Currently reading: Saab’s financial woes worsen
Saab could be facing bankruptcy following the announcement that it can no longer pay its workers

Saab has announced that it will be “unable to pay the wages to employees” as it has not yet obtained the necessary short-term funding.

This has sparked threats from workers who are considering legal action, which could end in the company’s bankruptcy.

From June 27 IF Metall and Unionen groups said they would send a formal demand for payment, at which point Saab would have “seven days to react," IF Metall representative Veli-Pekka Saikkala said.

Swedish Automobile and Saab Automobile are currently discussing the option of releasing funds through sales and leasing of its buildings although “There can be no assurance that these discussions will be successful or that the necessary funding will be obtained,” according to the firm.

Saab’s production line currently sits idle until at least July 4.Read more about Saab's production problems

See all the latest Saab reviews, news and video

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