STOCKHOLM -- Unions at Saab, which is unable to pay wages to its workers, threatened on Thursday to start a legal process that could end in bankruptcy for the iconic brand.
The IF Metall and Unionen groups said they would send a formal demand for payment on Monday if their members had not received their wages.
"Then the company has seven days to react," IF Metall representative Veli-Pekka Saikkala told Reuters. "After that there are two alternatives. Either we see that the situation can be solved, or we demand that Saab is put into bankruptcy."
Earlier on Thursday, Saab said it could not pay wages to its employees because it had not yet obtained necessary short-term funding.
Saab's owner, Swedish Automobile NV, formerly known as Spyker Cars NV, and Saab are still in discussions with various parties to obtain short-term funding, including the potential proceeds from a sale and lease-back of Saab's real estate, it said.
Saab spokeswoman Gunilla Gustavs said it is not possible to say when salaries will be paid. "That depends on when and if we can secure short-term funding, for example through the real estate deal," Gustavs said. "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."
Swedish Automobile this month agreed on a rescue package for Saab from two Chinese car companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. that it says would solve longer-term financing problems if approved by authorities in China and Europe.