A Swedish carmaker is issuing new shares to maintain the manufacturer's strength and prevent its demise, according to published reports.
At 64 years of age, Saab Automobile is coming off a production halt during this past March when a dispute over supplier payments emerged, Bloomberg reports . Sold by General Motors ( GM ) to Spyker Cars in 2010, Saab is struggling to survive and its primary manufacturing site has been idle since the first days of June as the carmaker has postponed paying its employees.
"It's definitely a tough, tough time being a Saab dealer," general manager Wes Harris of Dirito Brothers Saab in Walnut Creek, California told Bloomberg. "A lot of the customers that are coming in that are Saab buyers are definitely nervous about the car company and what's going on."
The carmaker is set to issue 4 million new shares a part of an existing pact with GEM Global Yield Fund Limited, the Associated Press reports .
The mayor of the Swedish town told Bloomberg that 3,500 of the company's 3,700 employees work in that town and as many as 9,000 regional employees could lose their jobs should Saab be shuttered. In a town where the unemployment rate is around 10 percent, backup plans include sending the newly unemployed for retraining at local universities.