AUTOMOTIVE INDUSTRY

Saab's "small chance of survival" as taxes unpaid

4:17 min

UPDATE 13:55

The situation for Sweden-based carmaker Saab is going from one drama to the next. In the last few days, a board member has quit while several million kronor in taxes and fees which should have been paid have been outstanding. Not to mention the workers still waiting for their pay checks, reports Swedish Radio News.

However now US$4.5 million has been paid in from the Chinese company Youngman which Saab says will cover outstanding taxes. The company is still waiting for a further US$26 million needed to pay salaries ahead of Christmas.

Despite still teetering on the brink of bankruptcy, new reports this morning indicate that the ailing company may be given yet another chance to reconstruct, reports Swedish Radio News.

A deal with two Chinese companies was fuddled by a veto on technological licence transfers from Saab mother company General Motors. Saab has not been in production since April and the lengthy process for state protection has raised many observers' eyebrows.

Lawyer Odd Swarting is the chairman of Rekon, an association of lawpersons involved in bankruptcy and restructuring issues in Sweden. He tells Swedish Radio News that he thinks the chances of survival are very low for Saab. He thinks the company's saviour has been the patience of those depending on it to put its finances in order.

Swarting says, "In Saab's case there is clearly a very strong will on the part of subcontractors, employees and society that the company should survive. That will has been a prerequisite for the many chances to save the company."