Saab auto supplier lays off 50 despite China funding deal

Dow Jones Newswires (Stockholm) - A parts supplier to Saab Automobile Tuesday said it would lay off 50 workers despite an announcement from Saab owner Spyker Cars NV (SPYKR.AE) that it had found a new partner to provide funds to help the troubled Swedish car maker resume production.

"We have waited a long time and it has cost us a lot of money," Plastal Chief Executive Per-Ewe Wendel told Dow Jones Newswires Tuesday.

Plastal delivers bumpers and other painted plastics to Saab, which accounts for 25% of the 400 million Swedish kronor ($63 million) in annual revenue at the company's Simrishamn plant.

Wendel said the decision to give notice was made by management Monday morning before Spyker announced its new short-term funding deal, but that didn't change the company's decision.

"We still haven't heard about a production start date from Saab," he said. Saab Automobile halted production six weeks ago when suppliers stopped delivering parts to its Trollhattan plant because they hadn't been paid.

Spyker Monday said it had signed a deal Pang Da Automobile Trade Co. under which the Chinese company will spend up to EUR45 million to buy Saab cars, and a memorandum of understanding under which Pang Da would acquire a 24% stake in Spyker for EUR65 million. The two companies also agreed to set up a distribution joint venture in China.

Plastal may review the number of job losses if Saab was able to restart production and demonstrate secure funding, said Wendel.