Beleaguered Swedish car manufacturer Saab has some life in it yet, as it has just signed a £25 million property deal.
The move comes just days after Saab announced it was not able to pay staff or suppliers because of major cash flow issues, following dreadful sales in 2010. It has already stopped production at its Trollhattan plant.
The money isn't enough to kick start production, but it is sufficient for Saab to pay some of its suppliers and its staff.
Saab has sold 50.1 percent of its property company, Saab Automotive Property AB, to a consortium of Swedish property investors, who have agreed to let it back to Saab over a 15-year period.
The news follows an announcement on Monday (June 27) that an order for 582 cars from a Chinese company had been received, injecting almost £12 million into the business. Saab said that the money, which equates to just under £20,000 per car, was to be used for staff wages.
Saab is also talking to a number of other potential investors in order to stave off bankruptcy. It's not out of trouble yet, though. It still needs to dramatically improve sales in order to stay afloat.
Last year Saab sold a quarter of what it needed just to break even, as only 30,000 new cars left the factory. Boss Victor Muller said: "We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation."
