Saab admits it cannot pay wages

Saab said on Thursday he could not pay salaries to employees, because he had not yet obtained the necessary short-term funding.

Unions said the ailing automaker had until Monday to pay their salaries or start a legal process that could lead to the bankruptcy of the company, owned by the Dutch Swedish car.

IF Metall and Unionen said they would send a formal request for payment if their members are not receiving their salaries.

"Then the company has seven days to respond," IF Metall representative Veli-Pekka Saikkala told Reuters.

"After that there are two alternatives. Either we see that the situation can be resolved, or we demand that Saab is bankrupt. "

The automaker is strapped for funds struggling to revive production after it was stopped for most of April, May and June, because she could not pay suppliers.

Swedish Saab Automobile and are in discussions with various parties to obtain short term financing, including through a sale-leaseback of real estate of Saab and their financial relationships with existing funding mechanisms.

"There can, however, no guarantee of these discussions will be successful or that the funds will be obtained," said Saab.

Automobiles Sweden this month accepted a rescue plan for Saab by two Chinese car companies, Youngman Automotive Zhejiang Lotus Pangda and Co, which would solve the funding problems in the longer term if approved by the authorities in China and Europe.