Saab heading back to the future

// Posted in Saab

Saab PhoeniX concept

“Saab is a company that builds cars that cannot make money.”

They are the words of Swedish Prime Minister Fredrik Reinfeldt. Hardly a ringing endorsement for one of Sweden’s most iconic brands. The comment was made yesterday following a press release on Thursday from Saab announcing they were unable to meet their salary obligations.

“Swedish Automobile N.V. (Swedish Automobile, formerly Spyker Cars N.V.) announces that Saab Automobile AB (Saab Automobile) will be unable to pay the wages to employees as it has not yet obtained the necessary short-term funding,” reads the statement.

Saab is currently negotiating to sell off some of its real estate to raise funds. But the following words from Thursday’s press statement can’t be filling unpaid employees with much hope.

“These discussions are ongoing. There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained.”

Unsurprisingly, Swedish unions have become involved. IF Metall representative Veli-Pekka Saikkala says, “The company has seven days to react. After that there are two alternatives. Either we see that the situation can be solved, or we demand that Saab is put into bankruptcy.”

The mood on influential blog SaabsUnited is hopeful, but the possibility of bankruptcy for the revitalised Saab appears very real.

Saab enters new era

[Source: SaabsUnited & Reuters]

Saab press release, 23 June 2011

Trollhättan, Sweden: Swedish Automobile N.V. (Swedish Automobile, formerly Spyker Cars N.V.) announces that Saab Automobile AB (Saab Automobile) will be unable to pay the wages to employees as it has not yet 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.

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 Automobile has ongoing negotiations with suppliers in reaching agreement on the terms of payments in order to resume an orderly inflow of parts and components.

Swedish Automobile will update the market of any new developments.