Alastair Sloane: Saab may hit red light in NZ

The slick 9-5 has not proven, as some believed it would, to be the saviour of Saab. Photo / Supplied

There was always something appealing about Saabs, mostly about the interior.

The cockpit-like layout was simple and functional, echoing the company's beginnings as an aircraft company. The centre console was uncluttered. Same with the speedo and other gauges behind the steering wheel. You could turn them off. The instrument panel would go black. Doing so saved battery power and helped to ease tired eyes at night, said Saab.

Such things made Saab different. It won many international awards being different. Like the ground-breaking anti-whiplash device built into the seats. It liked being different. Its customers liked it being different. But Saab is running short of customers. It is running short of everything. Mostly cash.

Once it was selling 130,000 cars a year. Niche company with nowhere to go but up, they said. General Motors liked what Saab was doing and bought a 50 per cent stake, later increasing it to 100 per cent. But GM only meddled in Saab. It fiddled about with the brand in New Zealand, through Holden dealerships.

When GM went bankrupt, Saab went looking for a lifeline. Its plants cut back on production until it found one in Spyker Cars NV, a niche supercar-maker from the Netherlands.

Analysts warned that Spyker would struggle with Saab. Indeed it has. Spyker stopped Saab production last month while it went looking for money.

It looked last week as though it had found some. Chinese carmaker Hawtai Motor Group agreed to invest around $220 million for a 29.9 per cent stake in Spyker. Hawtai also planned to float Spyker a quick $50 million loan. The transaction would have eased the cash shortage that halted Saab production at home in Sweden. It also would have allowed Saab to make a comeback in China after being absent since 2008. But the deal collapsed. Hawtai said it was not able to obtain all necessary approvals from the Chinese Government.

Spyker says it is continuing to work on securing short- and medium-term funding for Saab, including talking to "various" Chinese partners, one of which is said to be Great Wall Motor. Spyker is seeking further funding from the European Investment Bank, while Russian banker Vladimir Antonov has said he'd like to take a stake. GM, Saab's former owner, has agreed to allow Antonov's investment.

Can Saab survive? It may, but it is unlikely to appear in a small market like New Zealand ever again.