Hard times for Saab

Saab make beautiful looking cars, but the Swedish manufacturer has fallen on hard economic times of late, halting production in April due to a shortage of funds, and now admitting that a short-term financing crisis means it can not pay its staff.

'This is really bad news and we are working intensely to do something about it. There are no guarantees but we are not giving up," said Saab spokesperson Gunilla Gustavs.

Swedish Automobile, the owners of Saab, said it was in discussions with 'various parties to obtain short-term funding.' However, the company warned: 'There can be no assurance that these discussions will be successful or that the necessary funding will be obtained.'

After news of the cash shortage became public knowledge, Swedish Automobile's shares took a nose dive, falling as much as 23 percent at one stage.

Martin Crum, analyst for Dutch investment bank Amsterdams Effectenkantoor, described the Swedish company's survival chances as 'slim'.

'The company is still not able to produce cars; that's the main concern. If you don't sell cars, you don't get cash in,' he said.

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