Saab pulls out of Frankfurt motor show

It's become a cliché in the automotive press to proceed Saab with the word 'troubled' recently. Yet the company's latest announcement does little to dispel the notion that all is not well in Trollhatten, as it has announced that it will not be featuring at September's Frankfurt auto show.

The Swedish car manufacturer has had trouble paying suppliers in recent months, and it is thought that Saab will instead use the money allotted to Frankfurt in order to pay them. The carmaker has stated that it will be fully concentrated on resuming production at its Trollhatten factory.

The facility has not been producing cars since late March as a cash shortage hit the company, meaning its assembly line has dwindled since June. Aside from the money that is freed-up by not featuring in Frankfurt, the company is also attempting to raise funds through other means.

A statement from the company's ‘Inside Saab' blog said, "Whilst it would be desirable to be at the show to help further Saab's global presence, it is not considered an appropriate use of resources at this time."

At March's Geneva auto show, Saab revealed the PhoeniX concept, which – at best – received a mixed reaction. The car, designed by a team headed by Jason Castriota, gives a first glimpse as to how the company's next 9-3 model will look.

The automaker has also announced that it is offering four million new shares in a $214 million equity facility. The shares, which will be sold under an existing agreement with GEM Global Yield Fund Limited, will provide Saab with an estimated $5.8 million in cash which will then be ploughed back into getting production up and running again.

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By Rufus Thompson