Saab Can't Pay Its Employees: Is The End Near?

Discussion in 'European Cars' started by V8stangman, Jun 23, 2011.

  1. #1 V8stangman, Jun 23, 2011
    Last edited by a moderator: Apr 25, 2016
    Saab's troubles since leaving the General Motors fold for Dutch ownership and Russian banker courtship have been many. Production halts, inability to pay its suppliers, and now, inability to pay its employees--the list is growing more and more desperate, and the company is too. This could be the end of Saab.

    In mid-June, Saab's corporate parent Spyker was still seeking financing for the ailing Swedish brand by courting various Chinese automotive firms, including Pangda Automobile Trade Co., a network of dealerships, and Youngman Lotus Automobile. Those deals fell through, leaving Saab without any cash or much in the way of prospects.

    Just this week, Saab extended its production shutdown, which has been in place intermittently since April, through July 3. Saab said at the time that it planned to return to normal production from July 4-24, but the latest development casts that in doubt. A day later, Saab revealed it was unable to pay its suppliers, asking them instead to take 10 percent of the debts owed, with the rest promised to come in September. Saab's supplier debts were estimated at $47 million.

    Today, Saab announced it is no longer able to pay its employees because it hasn't received any short-term funding. Discussions with "various parties" are ongoing, but at the moment, it's not clear where the funding would originate. Saab itself acknowledges that there can be "no assurance that these discussions will be successful or that the necessary funding will be obtained."

    If Saab can't pay its workers, and financing isn't found very soon, it may be the last straw for the company. Employee unions at Saab have already threatened legal action against the carmaker for unpaid wages. If that lawsuit gets enough traction, it could force Saab into bankruptcy. That Saab would emerge relatively whole from the process, given its current straits, is unlikely.
  2. We can only hope.
  3. Awesome.
  4. <A BORDER="0" HREF=""><IMG BORDER="0" SRC="pitlane/emoticons/sad.gif"></A>
  5. too bad, but really
    do they make anything even remotely competitive?

    In terms of shitty auto makers, at least Dodge/Chrysler have a wide range of various types large inefficient trucks to sell like the Viper and Charger, Saab has .. the 9-3?
  6. the 9-5 which is actually pretyt good
  7. Another thread lacking Pandabeat.
  8. Most likely Chinese companies will take complete ownership at an attractive rate, directly or indirectly, just before the company goes under.
  9. I'd almost rather see them die
  11. bring back the sonnet
    oh wait..
    <A BORDER="0" HREF=""><IMG BORDER="0" SRC="pitlane/emoticons/sad.gif"></A>
  12. #12 SupraMan, Jun 27, 2011
    Last edited by a moderator: Apr 25, 2016
    Saab able to pay some debts courtesy of EUR13 million order

    By Karl Peskett | June 28th, 2011

    Saab Automobile has received an order of 582 vehicles from a Chinese company with a value of EUR13 million, which will enable it to pay off some of its debts.

    Last week, Saab announced that it was unable to pay its workers and some suppliers, however with the money given to the company up front, Saab will be able to pay staff and make partial payments to some of its debtors.

    Short-term funding is still being discussed, while the sale and lease-back of the real estate on which Saab Automobile sits is one option to try and relieve some of the debt.

    Victor Muller, CEO of Saab Automobile and Swedish Automobile said the following in a statement released today.

    “I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees’ wages before the end of this month. The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile.

    We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.

    Mr. Vladimir Antonov’s interest in participating as an investor/financier in Swedish Automobile remains unwavering, but he is still awaiting a decision on his clearance from parties at interest following the Swedish National Debt Office (NDO) recommendation to clear him over 8 weeks ago.

    Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible.”

    CarAdvice will continue to update you on Saab’s position.
  13. #13 SEABEE, Jun 27, 2011
    Last edited by a moderator: Apr 25, 2016
  14. #14 RLQ, Jun 29, 2011
    Last edited by a moderator: Apr 25, 2016

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