Saab “can’t pay wages”

The darkness at the famous yet beleaguered Swedish motor manufacturer gets ever deeper with news that there isn’t enough short-term cashflow available to pay its 3,800 employees.

It is this same lack of immediate spending funds that has recently halted plant production - on and off – for the last few months, with the manufacturer of saloons, estates, and now a crossover with the new 9-4X, currently unable to pay its parts suppliers. Saab’s plants are currently silent with production not scheduled to restart until July this year. 

"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," the company said in a released statement.

There is, however, longer term good news for Saab from the Far Eastern horizon with substantial orders placed for their premium cars, SUVs and estates coming in from China; the biggest single market for new cars in the world. If only Saab could find the cash to build and then sell their products to the keen and brand-conscious Chinese. 

A decent foothold in the about-to-boom-even-further Chinese new car market could bring a wonderful future windfall for Saab, at a time when all the major international players in the automotive industry focus harder on future sales in the vast Chinese market. Saab new car sales are in serious need of a boost right now with around only 30,000 cars sold in 2010.

But, as they say; you have to spend money to make money and, at the moment, Saab need something lucrative to happen to help them break out of this vicious, cash-strapped circle.


By Daniel Anslow

Follow us @totallymotor