Saab owner Spyker Cars reported a first-quarter net loss of 72 million euros ($107 million) on Friday and warned it was unlikely to meet its 2011 production target. The company also said it is talking with Chinese companies about a possible investment in Saab.
"We have opened up alternative routes to fund the company mid and short term including, but not limited to, discussions with Chinese car manufacturers," Spyker CEO Victor Muller said in a statement.
Muller did not name the Chinese companies but Bloomberg and Dow Jones news wires said Spyker is negotiating with Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co. Saab may partner with one of the companies within days, Bloomberg said.
An agreement would likely include the Chinese company investing in the Swedish carmaker as well as forming a joint venture to produce Saab vehicles in China, Bloomberg sources said. It may also include the Chinese company distributing the Swedish brand at its dealerships.
Saab is seeking a Chinese partner to raise funds amid a cash crunch that has forced it to halt production. The move would also give it an entrance to the world's largest auto market.
This week, Spyker was thrown a lifeline when Sweden's Debt Office and General Motors both said they approved a plan for Russian businessman Vladimir Antonov to invest 30 million euros in Spyker in return for a 29.9 percent stake.