Zeewolde, The Netherlands, 26 July 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) 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. 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 the payments can be made.
Swan will update the market of any new developments.
Obviously, this is bad news but given the day to day liquidity issues at Saab that we’re well familiar with, this isn’t necessarily huge news. I’m not trying to downplay this move, but it’s seems less severe than the last wage delay, and it shows that the executives are taking responsibility and the hardest hit first. The news that Youngman, Pang Da, and Saab will be meeting this week to inject new liquidity into Saab (covered in the next article) is welcome news which we all hope pans out. The second to last sentence of the press release seems to confirm that.