Saab gloom deepens as targets cut

The outlook for Swedish carmaker Saab deteriorated further yesterday as its Dutch parent Spyker cut its 2011 target and turned to shareholders as well as Chinese companies for funds.

Amsterdam-listed Spyker bought Saab from General Motors a year ago but has struggled to turn around the company.

In recent weeks it has desperately scrambled to find new sources of funding so it can pay its suppliers, after several stopped delivering parts, bringing Saab's assembly line to a standstill for much of April.

On Thursday, Spyker was thrown a lifeline when Sweden's Debt Office and GM both approved a plan for Russian entrepreneur Vladimir Antonov to invest €30 million in Spyker in return for a 29.9 per cent stake.

While Spyker chief executive Victor Muller welcomed the Debt Office's approval, he said it was just the first step and that other commitments, for example from the Swedish government, were required before Antonov could provide funding.

"It is unclear at this time what the consequences of the recent production stoppages and funding issues will be for our full year 2011 forecast but it is realistic to assume that realising our 80,000 cars sales forecast is no longer feasible," Muller said in a statement. He is in China as part of his hunt for fresh funds.

A source familiar with the matter said one of the companies Spyker was talking to was Great Wall Motor, China's largest sports utility vehicle maker.

Chinese carmakers want to expand product ranges at a time when sales at home are expected to slow after the government withdrew incentives that helped elevate the country to the world's top auto market in 2009.

As recently as late March, Spyker stuck to its target for Saab to sell 80,000 cars this year against 30,000 in 2010.