The outlook for one of the world’s best-loved and most reliable cars is looking a little bleak at present, as Swedish auto maker Saab reveals losses of more than 224 million euros over the six months to June. This does not compare favourably to the previous 6 months, which saw the firm lose 56 million euros.
Staff have now had their wages delayed by 3 months and no car production has taken place since way back in April, a situation brought on by the car company’s suppliers ceasing deliveries because of non-payment.
There is sadly no such thing as financial breakdown cover for companies, but there remains a glimmer or two of hope in the form of Chinese companies Pa Dang and Youngman. These firms are attempting to purchase small stakes in Saab – sums of money that could help kick start production by ensuring staff and suppliers are paid.
But the regulatory authorities are dragging their heels on this one and the deal is yet to go through.
It seems that the Swedes are not too keen on the idea of such distant investors taking stakes in their most prized and indeed only production car maker. But, like many other firms around the western world, they are going to have to accept Chinese money, or no longer exist.
It is a tough situation to be in, but by taking the money they may well be able to keep their brand alive. Similar situations have occurred many times in the UK, with Jaguar Land Rover (owned by India’s Tata) and MG (owned by China’s SAIC) coming to mind.
It does appear that, although Saab is already controlled by a Dutch company (formerly Spyker), allowing the company’s many technological breakthroughs to be sent all the way to China may be a little hard to take. Time will tell.
Breakdown Cover from 
