Saab able to pay wages again after new order

Saab has announced it has received a €13m (£11.6m) order that will allow it to pay its staff's wages again.

At the end of last week the financially stretched brand announced it did not have enough cash to pay its workers on time, but a 583-car order has eased the pressure.

The €13m order is from an unidentified Chinese buyer, but Saab has not confirmed whether it is one of the two companies that have already invested in the brand – Pang Da and Youngman.

Saab will still not be able to complete the order just yet though, as the factory in Trollhatten is still not making cars. A company spokesperson said that this 582-strong order, which works out at €22,336 (£19,856) per car, will be added to the list of 10,000 orders the company already has waiting to be made.

While further statements will be issued as soon as the company knows more, the spokesperson says it is expected that more will be said on 4 July, specifically about the situation involving the ownership of the company's factory in Sweden.

Saab is trying to complete a sale and leaseback deal with a Swedish real estate company that should free up another chunk of cash.

Victor Muller, CEO of Saab Automobile and Swedish Automobile, said: "I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees' wages before the end of this month.

"We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon."
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