Saab unable to pay wages

* Saab's staff wont be paid * Short-term funding unavailable * UK statement imminent...

23 Jun 2011 09:33 | Last updated: 14 Jun 2018 00:03

Saab's financial problems mean it won't be able to pay its workforce.

Swedish Automobile (formerly Spyker Cars) which owns Saab has revealed theres not enough short-term funding to settle the wage bill.

Saab is in discussion with various parties in a bid to generate cash, and has plans to sell some of its property and then lease it back.

The car maker says that discussions are ongoing, but that 'there can be no assurance that they will be successful or that the necessary funding will be obtained.'

Saab remains upbeat about its long-term future. On June 13, it announced details of investment worth around 218m. Chinese manufacturing company Youngman will invest 136m (around 121m), in return for a 29.9% stake in the manufacturer. Pang Da, another Chinese firm, has pledged 109m (around 97m), for a 24% stake.

News for UK buyers and owners
Saab UK has released an official statement to assure buyers and staff that it's business as usual at UK showrooms.