Saab receives an injection of funds from Youngman

Swedish newspaper Dagens Industri reported that China’s Youngman Lotus Automobile gave Saab US$5 million to cover its immediate tax expenses. Reuters reports that Youngman plans to pay Saab another US$26.43 million by next Wednesday and US$13.1 million until the end of December.

Eric Geers, the Swedish carmaker’s spokesman, said that “I can confirm a first payment from Youngman. Funding has come into Saab accounts”, but would not disclose the amount or any further information. He added, “Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganization”.

If the Swedes receive the much needed cash, it may allow Saab to implement its plan and restart production soon. The move was a sign of optimism for the troubled Trollhättan-based carmaker, which had undergone a year of financial difficulty that had affected production.