Business

Saab resumes car production after Pang Da deal

A Saab worker takes a car from the production line on 27 May
Image caption Saab aims to assemble 100 cars on Friday and get up to normal production of 218 on Monday

Saab has resumed car production after a layoff of nearly seven weeks caused by financial problems.

Last week, China's Pang Da Automobile agreed to buy 24% of Saab's parent company Spyker Cars and make an upfront payment for 1,300 Saab cars.

Saab says it now had orders for more than 8,000 cars.

The shutdown began after several parts suppliers stopped delivering to the Trollhattan factory, saying Saab had failed to pay its bills.

The deal with Pang Da still needs to be approved by the Chinese government, the European Investment Bank, the Swedish National Debt Office and Saab's former owner General Motors.

"We have gone through a rough patch in recent weeks but Saab is back in action again," said Spyker chief executive Victor Muller.

"We will work hard in the coming period to regain confidence and show our ability to become a successful carmaker."

Pang Da's chief executive Pang Qinghua visited the Trollhattan plant for the first time on Friday.

He met Sweden's industry minister and the Debt Office on Thursday.

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