1 Sep 2011

Troubles worsen at Saab

9:09 am on 1 September 2011

Losses at Saab have widened and its problems appear to be mounting.

The Swedish car marker is struggling to find funding and has delayed paying employee wages for a third consecutive month.

Production at its plant in Sweden has stopped because it has not paid suppliers.

Trade unions are warning that if the company, Swedish Automobile, does not pay its workers this week, they may go to court to apply to have the company wound up.

In July, the company signed deals to sell a minority stake in the business to two Chinese firms - Pang Da and Youngman. However, the BBC reports these still require regulatory approval.

Netherlands-based Swedish Automobile, formerly called Spyker, bought Saab from General Motors in 2010.