Saab unable to pay wages to employees

2011 Saab 9-5

Saab announced today that it will be unable to pages to employees as it has not 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,” Saab said in a statement. “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 said it is still in ongoing negotiations with suppliers in reaching agreement on the terms of payments in order to resume an orderly inflow of parts and components to produce vehicles.

– By: Omar Rana