For the first time in its recent troubled history the Amsterdam listed Swedish Automobile that ultimately owns Saab has reported a huge net loss of $319 million for the six months to the end of last June, more than four times the $79.8 million it lost in the same period in 2010.
Sales in the first half of this year amounted to $511.8 million, compared to negative equity of $566 million.
Saab is still searching for funding to keep it afloat as it tries to finalize a $349 million deal with China’s Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile to sell cars in China – the trouble is that still requires the approval of the Chinese government.
Saab has been unable to pay its major suppliers for most of the summer and car production ceased on June 9th while last week it stopped paying its employees.
Saab’s chief executive, Victor Muller talked of “rays of light” for short term financing, but a company statement added that “…if adequate funding for the group cannot be secured…a going concern can likely not be maintained.
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