Attempts to save Saab from oblivion are "getting pathetic" according to Euro suppliers boss
24 June 2011

Saab should declare itself bankrupt as its attempts to save itself from oblivion are now “getting pathetic”, according to the head of Europe’s association of automotive suppliers (CLEPA).

Lars Holmqvist told just-auto that Saab’s sole remaining option was to declare itself bankrupt and to allow its employees’ salaries to be guaranteed by the state for six months.

“In a way I hope Saab will do it themselves - it is the only decent thing to do - they have run out of money completely,” he said.

“"Somebody will declare them bankrupt - there are thousands of people who can do it - if you are a supplier or government or an employee and not being paid.”

Full story - Saab's finanical woes worsen

Saab yesterday declared it was no longer able to pay its workforce and recent deals with two Chinese firms - Pang Da and Zhejiang Youngman - have failed to free up cash flow at Saab to allow it to return to normal day-to-day operations and pay off substantial debts to suppliers.

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Production at its Trollhattan plant has almost ground to halt since April 6 and there will definitely not be any new cars built at the plant until mid-July at the earliest.

Saab boss Victor Muller, who also runs Saab’s parent firm Swedish Automotive, is now looking to the US for new investment, attempts which were dismissed by Holmqvist as “pathetic”.

Read more on Saab's production problems

Holmqvist also hit out at the Swedish government for failing to take decisive action to save the company from its present woes.

"What they could have done in 2009, is come out with a package like the German and French governments, which I talked to them about, but no."

Holmqvist believed it would take as much as one billion euro to save Saab.

Despite Saab's worsening finanical situation, Pang Da's board secetary said there was no change in its investment plans for the Swedish firm.

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