SWEDEN: Saab warns on future as H2 losses mount
Saab reported a huge jump in half-year opearating loss from EUR21.9m to EUR201m and warned of significant uncertainty if future financing cannot be found.
While not unexpected, the news illustrates in stark black and white terms the enormous predicament in which the Swedish automaker finds itself after months battling its financial storm.
A statement from Saab parent Swedish Automobile cautioned: "If adequate funding for the group cannot be secured [in] timely [fashion], going concern can likely not be maintained."
And further comments by Saab CEO Victor Muller underlined the seriousness of the automaker's situation, particularly with relation to its staff, whose wages remain unpaid for August.
"It will come as no surprise this has been an unbelievably tough quarter for this company," he said. "Nothing is worse than having to delay salary payments to your loyal employees and they deserve nothing less than my sincere apologies.
"Moreover, our ever tighter financial situation resulted in sustained production stoppages, lost revenues and a significantly increased operating loss. Our business plan is under review pending completion of funding negotiations and to reflect ventures with our future partners Pang Da and Youngman."