The Saab saga continues. According to Reuters, the Swedish automaker has announced that the company is issuing more shares in an attempt to drum up funds to pay its white-collar workers. GEM Global Yield Fund, an investment company, has committed to purchasing around five million of the new shares, giving it a 17 percent stake in Saab. Even so, most analysts predict the move will only raise around €6.9 million (around $10M U.S.) when the automaker needs at least €50 million ($71.5M) in order to be able to pay its suppliers and fire up its production lines once again.

Reuters reminds us that that just last month, Saab managed to evade having to claim bankruptcy by settling with a supplier. Unfortunately, the company then made it clear that it couldn't pay its employees because investments from its foreign partners hadn't materialized in time. Saab says that it hopes to use the new funds from GEM to finally pay the automaker's white collar workers.


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  • 16 Comments
      JaredN
      • 3 Years Ago
      What a soap opera.
      matt_shift
      • 3 Years Ago
      SAAVE SAAB! I really wish an honest Saab-loving investor would pick up the company. It seems like most of the shareholders right now just want to exploit the brand once it (eventually) gets back on its feet..
        4 String
        • 3 Years Ago
        @matt_shift
        Yeah, they seem to be trying to take advantage of Saab... *****.
        kevsflanagan
        • 3 Years Ago
        @matt_shift
        I have a feeling your right. Investing now but just enough to be able to lay claim to this that or the other parts and production bits once it goes belly up. I know it will never happen but I'd love it if Christian Von Koenigsegg flew on down all Superman like and saved Saab legit like.
      AngeloM
      • 3 Years Ago
      Ultimately, the best chance at the brand surviving is if a Chinese car company who wants to expand buys Saab. It wouldn't be ideal for the Saab enthusiasts who want a "pure" Saab, but realistically, those days are over. General Motors squandered a chance to make Saab into a full line brand by never commiting to a good entry level Saab. If a Chinese company buys them----Saab can continue designing and manufacturing models like the 9-5 in Sweden. And maybe they can co-develop and manufacture an entry level model in China for export----a basic, reliable and stylish inexpensive ($19,000-24,000 U.S.) car to re-establish Saab as a competitor to Volkswagen, not BMW. They moved too far away from their original intent of building interesting and good small cars (like the old 1960s era 96 model). Chinese factories are capable of building fine cars (like the Buicks made in China). This is the only way I see Saab's brand surviving for the long haul.
      jbm0866
      • 3 Years Ago
      Would anyone buy a car built by workers that may or may not get paid? Just sayin..
        tinted up
        • 3 Years Ago
        @jbm0866
        I would! They would just have to make it a good enough price >:)
        Fazzster
        • 3 Years Ago
        @jbm0866
        Good question. Perhaps the average Saab worker is so full of national pride and love for the product, they trudge on despite the uncertainty.
          PJPHughes
          • 3 Years Ago
          @Fazzster
          When you consider the town of Trollhattan's economy has been driven significantly by Saab for many years, of course they trudge on hoping for success, otherwise they have to move to find work or build a new skill set. Or change careers completely. I'm sure many of the auto workers in Michigan held out, just like the coal miners and steel workers in PA held out.
        tenspeeder
        • 3 Years Ago
        @jbm0866
        well people buy cars in the US built by UAW workers that may or may not have been drinking.
        Diggz
        • 3 Years Ago
        @jbm0866
        you got a point there!!
      • 3 Years Ago
      [blocked]
      throwback
      • 3 Years Ago
      sigh, when will this be over? First the suppliers now the workers. If you can't pay the help, you're out of business.
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