Saab concedes it can’t pay employees

Saab Automobile AB says it will be unable to pay employees as it has not yet obtained the necessary short-term funding to kick-start operations.

Swedish Automobile N.V. (formerly Spyker Cars N.V.) says both Swedish Automobile and Saab say they remain 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.

“These discussions are ongoing. There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained,” the automaker said in a release on its website.

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