Saab will be unable to pay the wages to employees image

Swedish automaker Saab, this morning said that will be unable to pay the wages to employees, as it has not yet obtained the necessary short-term funding.

Swedish Automobile and Saab Automobile are in discussions with various parties to obtain short-term funding, including via the sale and lease-back of the real estate of Saab that was announced previously, and with their financiers in connection with current financing arrangements.

These discussions are ongoing. There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained.

Saab Automobile has ongoing negotiations with suppliers in reaching agreement on the terms of payments in order to resume an orderly inflow of parts and components.

The news comes just a day after the automaker said that the factory in Trollhattan city will not operate for another two weeks (June 20-July 3). Apparently, Saab has still not secured an agreement with all of its suppliers.

In addition, according to some analysts, the agreement to sell a 29.9 percent stake in the struggling Swedish company to Zhejiang Youngman Lotus Automobile Co. may not help the carmaker turn itself around, analysts say.

Saab’s Trollhattan factory in southern Sweden is idle for at least two more weeks while the company is in talks with suppliers.