Saab cannot pay salaried workers this month

Even with the multi-million dollars investment deals with various hedge fund and Chinese distribution deals, things are still going downhill for Saab as now the Swedish automaker has announced that they will be unable to pay salaried workers this month.

This is not the first time that Saab has been unable to pay their workers as earlier this year the company was unable to pay the union floor workers responsible for vehicle production in the company’s Trollhattan plant but this time, the cash flow shortage affects white collar salaried workers. Overall, roughly 1,600 people will go unpaid this month which covers about 45% of the company’s total workforce – including various levels of management.

Sources state that Saab and parent company Swedish Automobiles announced that they would be forced to “delay” this month’s wages. The company claims that this is because they have not received payments from certain investors that they planned to use for wages and while the automaker claims that those funds are already committed to the salaries of the white collar workers; the funds have not yet arrived so they cannot be paid. The company has brought in millions over the past few months but with much of that going to plant workers and angry investors, many speculated that the help of the Chinese companies and hedge fund group would not be enough.

Looks like those folks were right.

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Comments

I guess Saab is currently having some problems with their top level management. If this is the case, then the production of <a href="http://www.car-stuff.com/saabparts.htm">saab parts</a> will be greatly affected.

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