Workers to go unpaid as Saab crisis deepens

Things appear to have gone from bad to worse for Saab. The beleaguered manufacturer's production line has already fallen silent, and now it seems that it cannot even afford to pay its workers.

The company has thus far failed to obtain the short-term funding which would allow it to begin functioning again, and the unions that represent its employees have threatened legal action if their demands for payment are not met next week.
Saab has desperately been searching for a partner to help alleviate the burden of its current debt, but a deal recently tabled with two Chinese firms has yet to be approved by regulators.

Even if the cash injection materialises, some analysts believe it will be insufficient to save the long-term future of the company as the development of critical future models (including a replacement for the obsolete 9-3) would likely remain stalled.

For now the brand is reportedly considering raising immediate capital by leasing or selling some of its buildings to satisfy its workforce, but its internal wranglings are looking increasingly desperate.

Despite the problems in Sweden, Saab GB has reassured its employees that they will continue to be paid on time, and orders for new cars can still be placed by brave buyers at its dealerships.
Read Full Story