Saab’s crisis deepens to breaking point. Cannot pay workers’ salaries.


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Thursday, 23 June 2011
Saab automobile is tumbling over as its crisis reaches breaking point. Today, the company said that it can not pay salaries to its employees. The company has come out clean to say that it has no money.

This is bad and could explicitly spell the beginning of the integration of Saab.

Saab had held talks with various parties to bring in new money in the short term and through property sales and leasing. But nothing concreting is coming forth.

“It is unfortunate, very sad to announce this on the day before midsummer, says Gunilla Gustavs of Saab Automobile's information department.

“We continue to seek short-term financial solutions.  And we cannot say anything further.”
The company also said that it is impossible to give any time frame in which there could be a solution but they wish to resolve the problem as soon as possible.


The information of Saab’s inability to pay wages was sent to Saab workers via email this morning, said Sten Larsson, Vice President of services worker Union.
Traditionally salaries are supposed to be paid on Mondays but it is not clear if some workers will get any money.

Money for not doing anything – because  Saab’s factory has remained closed for the past two week after reopening when the CEO came back from China with what was thought to be some money.

Before then the factory had been stagnant for more that two month with no car being built but with workers being fully paid. Talking about huge waste for a cash trapped company. No doubt, Swedish official are quietly saying that Saab should go and some Swedish respectable instructions have started writing its epitaph by claiming that the collapse of Saab would mean nothing economically to he Swedish economy.

But can Saab really collapse? It is possible but could right thinking people allow this iconic brand to go? Why not! MG rover went as well as other British big names went but Saab is in Sweden and not in the UK so let see what the mart Swedes will come up with.
By Team

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