September 8, 2011
Saab in trouble again 0
Saab has made headlines for the wrong reasons, yet again. They are now in risk of closure after another turn of bad luck for the Swedish car maker. It has been reported that they are attempting to gain protection from its creditors, in order to avoid bankruptcy.
Workers have at one stage not been paid for a total of 3 months. Production was halted earlier this year in April due to their 800 suppliers not being paid. In order to get production up and running again and to pay their workers properly, new funding is needed. It has been estimated that it could take up to £1billion to save the company. Who would be prepared to invest that amount of money for a fallen company?
However Victor Muller, the Swedish Automobile chief executive has stated he is also hoping that the Swedish wage guarantee scheme will allow staff to get paid what they are due in August. This can only be achieved if the companies’ bankruptcy protection plan is approved by the appropriate authorities.
He is also confident of gaining full support from the company’s creditors. He hopes to achieve confidence from the creditors by planning to fully them back, a sum that adds up to £132,000,000.
It is clear that the financial state of the company needs to be rebuilt. Doing so will provide more stability to the company, but who will submit the cash needed after the company has once again got itself into major trouble.
Many are left wondering how Saab is still running. A very disappointing 30,000 cars were sold last year, with a target of 120,000 needed to just break even. This year saw a drop in that figure of cars sold, leaving the companies day to day business in huge trouble. On a scarier note for the company, it has been mentioned that around 200,000 cars need to be sold yearly to keep the company stable.
The company can’t seem to stay out of the news. Many times throughout the last 18 months there has been negative news about the company. Whether they stay out of trouble or not on this occasion, it has been mentioned by many experts that the companies’ reputation is paying for it. Would anyone really buy a Saab now? Many would be sceptical about the company’s future, leaving them completely discouraged to purchase one. The future doesn’t look good for the company.
Servicing Stop: Nationwide car servicing. Contact us for Car servicing Fulham and other areas in London.