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.

In addition to the partnerships worked out with Chinese firms Pang Da and Youngman, the sale of $35 million worth of vehicles, a partial sale to a hedge fund group and the sale and lease-back of their Trollhattan plant, Saab is currently looking for someone to refinance the $346.6 million owed to the European Investment Bank (EIB). Should the company be able to remove themselves from the control of the EIB, they could proceed with selling a large portion of the company to wealthy Russian investor Vladimir Antonov. Rumor has it that Antonov has crazy money – like Ross Perot money – so if Saab and Swedish Automobile can figure out a way to get him involved, that could be the move to secure their future.

Also, there are reports that another collection agency will soon begin proceedings against the automaker on the behalf of a group of scorned suppliers. With the funds from the various investments over the past few months earmarked for the supplies, you have to wonder if the money is really coming in from these investors and if they are...where is the money going?

Stay tuned as TorqueNews continues following the unfortunate downward spiral of the Saab brand.

Source: Automotive News

A look at the Saab financial crisis:
Saab secures another $35 million loan, production could begin soon
Breaking: Saab sells plant to investment group
Sale of Saab plant to investment firm nears
Saab asks creditors to accept 10% now, 90% in September
Saab creditors seek over $3.6 million with collection agency
Saab joins forces with a second Chinese group
Spyker to become Swedish Automobile N.V.
Saab finds a new Chinese investor in Pang Da

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Comments

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