Factory Leaseback Deal Offers Saab A Lifeline

Swedish car maker Saab has been handed a cash lifeline after striking a deal to sell and lease back its property portfolio.

The firm has agreed the sale of a 50.1% share in its property, including its main Trollhattan production line, to investors.

The cash would help the company resume production, which ended in May after suppliers stopped deliveries because of unpaid bills.

However, Saab needs permission from the European Investment Bank, the Swedish National Debt Office and the Swedish government to sell the property.

It said it expected to receive the go-ahead shortly.

Saab's woes deepened last week when it said it could no longer afford to pay its 3,800 workers.

However, there was a glimmer of hope on Monday when it sealed a deal to sell 582 Saab vehicles to an undisclosed Chinese company for £12m.

Swedish Automobile - Saab's Netherlands-based owner - has been trying to secure funds from Chinese, Russian and Swedish investors to keep the company afloat, a year after buying Saab from General Motors of the US.

The parent company, headed by Dutch entrepreneur Victor Muller and previously known as Spyker Cars, announced a £200m deal this month to sell half the company to two Chinese companies, Pang Da and Youngman Automotive.

But analysts have questioned the likelihood of regulatory approval from Chinese authorities.