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Swedish carmaker Saab said Thursday that it cannot come up with the cash to pay its workers, according to France 24. The carmakers union told Reuters that Saab has until Monday to pay their workers, or they are taking legal action against Saab.Union representative Veli-Pekka Saikkala said that if the workers aren’t paid by Monday, “there are two alternatives. Either we see that the situation can be solved, or we demand that Saab is put into bankruptcy”.
Saab has been in trouble for a while. Earlier this month, they agreed to a bailout package from two Chinese car companies, Zhejiang Youngman Lotus Automobile Co and Pangda. The package from the Chinese companies does not give Saab enough cash on hand to pay its employees, however.
Swedish Automobile said that it was in talks with financiers to resolve the cash crunch. Swedish Automobile is the current owner of Saab, but it was previously owned by General Motors. The BBC argues that under GM’s ownership, Saab was able to sustain losses, but under Swedish Automobile, it cannot.
Martin Crum, an analyst from AEK, told Reuters that bankruptcy is still possible for Saab. “The company is in a downward spiral. The longer it takes, the tougher it gets. The longer it takes, the more potential buyers will leave,” he said.
Analysts argue that the best option for Saab at this point is a partnership with a big carmaker.
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