Saab Says it Can’t Pay Workers!! Company’s Survival in Doubt

New clouds are forming over Saab as the automaker’s parent company, Swedish Automobile N.V., formerly known as Spyker Cars N.V., said on Thursday it will be unable to pay its 3,800 employees their wages because it has not yet obtained the necessary short-term funding.

Swedish Automobile said it and Saab “are in discussions with various parties” to secure short-term funding, including through a sale and lease-back of Saab’s real estate assets.

“These discussions are ongoing,” Saab said in a press statement. “There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained.”

The company also said Saab was continuing negotiations with its suppliers to reach an agreement on the terms of payments in order to resume regular inflow of parts and components for its vehicles.

Due to the lack of parts, production at Saab’s Trollhattan factory has been on hold since June 8. Previously, the company had shut down its plant in April and May.

Swedish Automobile has agreed to sell more than 53% of its shares to China’s Pang Da Automobile (29.9%) and Zhejiang Youngman Lotus Automobile Co., Ltd (24%), but the deal has to be approved by Swedish and Chinese authorities.

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