Saab still in trouble

Saab has arrived at a crossroads yet again. The Swedish manufacturer has long been associated with quirky niche cars that compliment larger manufacturers’ mainstream vehicles but this is a formula that has struggled in recent years against the investment of larger European players.

Spyker attempted to resurrect the brand in the midst of the financial crisis but it has failed to create the economies of scale that are needed to be profitable today. Sergio Marchionne commented recently on the ability of a small car manufacturer like Saab to survive in a volume led market.

The Russian billionaire Vladimir Antanov has stepped in this year with the intention of injecting some much needed cash into the beleaguered car maker. Sources suggest that this money would be channelled through Bankas Snoras, a commercial bank based in Lithuania that Antanov has strong ties with.

This cash would allow Saab to restart production after it was forced to stop when suppliers ceased to send parts to Trollhättan, giving the 3,800 workers a lifeline.

The European investment bank and Saab are clearly nervous about Antanov due to the lack of transparency surrounding his previous dealings but it may not be the time to be picky. Antanov already has control of the plant through his company Saabs United and the resumption of production must be the auto maker’s primary aim.