Saab delays paying white-collar wages

26th July 2011, Comments 0 comments

Troubled Swedish automaker Saab has delayed paying wages to white-collar employees after some funds committed by investors were not paid in time, its parent company said Tuesday.

"Saab has delayed payment of the wages to its white-collar employees as some of the funds that were committed by investors were not paid in time to effect such salary payments," Swedish Automobile, previously known as Spyker, said.

"Saab Automobile is taking all necessary actions to collect these funds and continues discussions with various parties to obtain additional short term-funding so that payments can be made," it added.

Last Friday Swedish Automobile announced one of Saab's suppliers filed for bankcruptcy for one of its subsidiaries, Saab Tools, which owed it about 5.9 million kronor (651,000 euros).

The parent company later put out a statement saying Saab Tools reached and agreement on payment terms, resolving the issue.

Iconic Swedish brand Saab was saved at the last minute at the beginning of 2010 when it was bought by small Dutch firm Spyker from US giant GM.

In its 20 years as a GM brand, Saab never turned a profit.

The new owner had big ambitions for Saab but the carmaker has since then lurched from one cash crisis to another.

Production have again ceased at its Swedish plant on June 8 because the company lacked parts for its assembly line as suppliers halted deliveries to Saab over unpaid bills, with the company scrambling to find funding to pay its employees.

© 2011 AFP

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