SWEDEN: Saab posts Q3 US$495m net loss as crisis talks continue
Saab has reported a net loss of EUR367m (US$495m) for the third quarter as talks continue to pay its staff overdue November salaries and potentially restructure an ownership proposition from Youngman and Pang Da.
While the Q3 result will come as no surprise - Saab GB filed for administration this week just to add to the manufacturer's woes - it nonetheless adds to the sense of urgency surrounding the carmaker as it desperately seeks funds to restart production that has been halted since April this year.
Such is the gravity of the situation that unions are on standby to file for a wages claim, a potential precursor to a possible bankruptcy application and as a succession of headwinds continues to batter the Swedish company that is currently in voluntary reorganisation.
"From an operational point of view, the third quarter has been very tough," said Saab chief Victor Muller in a statement.
"Since Saab Automobile's production facility in Trollhättan was basically not in operation throughout the whole reporting period, we have been unable to provide dealers and customers with the cars they have ordered and stock levels around the globe continued to fall. As in the second quarter, this situation seriously affected our sales performance and overall operating performance.
"With regards to the future of Swan [Swdish Autombile, Saab's parent company], we still face much uncertainty in completing a transaction to structure the investments by Youngman and Pang Da either through the sale of Saab Automobile and Spyker or alternative structures which can secure the necessary approvals. If we manage to finalise such a transaction, we will consider all options for the company, including an orderly wind-down."