Saab: We'll Use the Money to Boost Production

Still operating under the Swedish equivalent of Chapter 11, Swedish manufacturer Saab hopes to secure bridge financing from the government, which in turn would help the carmaker boost production. Why? Well, to "meet the high demand", Jan Ake Jonsson says.

"We are discussing bridge loans," Jonsson was quoted as saying by Autonews. "If we were to get that kind of financing that would mean we could increase production. We have the demand and we would of course have to rehire a number of individuals."

When sports car manufacturer Koenigsegg was declared winner, out of the tens of bidders for Saab, the deal included a $600 million loan from the European Investment Bank (EIB), a loan which will be guaranteed by the Swedish state.

"We are in intensive discussions with the EIB about financing. Depending on the time horizon, we will take initiatives to hold on to our money so that we manage until the financing becomes clear, so I feel pretty calm on this issue," Saab's CEO added.

The former GM European unit says it needs around $1 billion to help it restructure and launch new, competitive models. For now, as Swedish industry minister Maud Olofsson said last week, it is unclear how much of that money will come from Koenigsegg. If the money raised is enough, a government guarantee may not be needed at all.

“We still don't have any information about the amount of money they are willing to invest. And that is a key point. The other is the ability to lead the company," Olofsson said.