Caarmaaker Saab caannot paay aautoworkers

[SoCalDem]

:spank:..I just HAAD to use Fark's headline of the story

http://www.bbc.co.uk/news/business-13886024

23 June 2011 Last updated at 09:07 ET

When a company can't even afford to pay its employees, you know it's in big trouble. Staff wages are invariably the last thing to go before any company has to give up and call it a day. This is precisely the situation in which Swedish carmaker Saab finds itself, having already suspended production after failing to pay suppliers. The reason could not be simpler - Saab does not sell enough cars.

Under investment

It sold just 30,000 last year, with analysts suggesting it needs to sell 120,000 just to break even. No business can sustain such losses for long, let alone a relatively small company with very little cash in the bank. And here lies the problem. Under the ownership of US car giant General Motors (GM), Saab was able to sustain losses. Following the sale to Spyker, now called Swedish Automobile, it cannot. Under GM's stewardship, which lasted for 20 years, Saab suffered from chronic under-investment, analysts say.

It makes just two cars - the 9-3, the current model of which is a decade old and won't be replaced for another two years, and the 9-5, which was replaced 18 months ago after 12 years.

snip

[Drale]

1. Wow that sucks

I bet my village board is kicking itself right now for letting the largest dodge dealer in the area move to the next town over to be replaced by a Saab dealer.

[PoliticAverse]

2. "Under the ownership of US car giant General Motors (GM), Saab was able to sustain losses."

Unfortunately for GM, it was not...

[FrodosPet]

3. Will the Swedish government nationalize it?

I am still learning about socialism, and I understand that Sweden is a "Social Democracy". I'm wondering if this is the kind of project socialist governments undertake? And if it is, and they are not "profitable", does the government pay for the wages and supplies?

[customerserviceguy]

4. Dude, join a twelve-step group

May I suggest AA?

[SoCalDem]

5. No, you may not

[DemoTex]

6. One of the best cars I have owned: a 1999 Saab 9-5 wagon (bought in Dallas)

Dr. D was t-boned in it by a red-light runner (at 50+) in 2007 (on my b-day). She was not scratched, but the Saab was totalled. I went to the Greenville (SC) Saab dealer (Sitton Buick, GM) the next day (with a sore Dr. D), and they were so arrogant that we went down the street and bought a Volvo wagon.

But, we liked the Saab a whole lot more than we do the Volvo. We got much better fuel mileage with the 4-cyl turbo Saab (32+ mpg highway) than we do the 5-cyl Volvo (25 mpg, best). I was hoping for another Saab wagon when the Volvo is done. Maybe not.

[flvegan]

7. Big shock.

I know that Saab has some rather...enthusiastic fans, but for God's sake it's built nothing but dreadful cars for ages. "Born From Jets" always made me laugh. Yeah, slow and ugly jets I suppose. And now, because Spyker was dumb enough to climb into that bed, they're probably done. I'm so glad that Koenigsegg failed to buy Saab.