Saab unable to pay wages again, blames delayed funding image

Saab Automobile AB has delayed payment of the wages to its white-collar employees as some of the funds that were committed by investors were not paid in time to effect such salary payments. That’s the second time in just 2 month!

Last month, Saab Automobile failed to pay both its blue-collar and white-collar employees on time. Wages were paid only after the company secured EUR13 million in short-term funding by selling 582 cars to a Chinese company.

Car assembly was halted in April when suppliers refused to deliver parts until they were paid, and Saab only narrowly fended off a demand for one of its units to be declared bankrupt last week.
Despite the difficulties, Saab says that the current problems are a short-term issue.

“We have other things going on to strengthen our financial position going forward, with a long-term deal with the Chinese for £245million,” said a Saab spokesperson. “Long-term we have the solution. Now it’s the short-term that we need to deal with.”