It seems barely a month goes by without get more bad news coming out of Swedish car firm, Saab. The manufacturer has been plagued by financial issues for some time now, resulting in a three month suspension of production whilst unable to pay suppliers for parts. There was a little upturn in prospects earlier this year with the news of Chinese companies Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade agreeing to buy 50%s of stakes in the company, thus giving a medium term financial injection to the ailing brand.
Unfortunately, however, approval of such deals needs to be reached by both Chinese and Swedish authorities, meaning that any more immediate financial problems aren’t really fixed at all. This is the reason that Swedish Automobile is unable to pay the wage packets of its staff, at least until they secure more immediate short-term funding. This means, of course, that the supply chain is unable to restart production, hinting at the possibilities that things are just likely to get worse before they begin to get better.
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