TROLLHATTAN, Sweden -

In the latest setback Saab is facing, the automaker revealed it does not have the funds to make payroll.

Dealers and employees appear to be holding their breath to see if management can pull renewed funding off, even as creditors, including suppliers, are knocking on the automaker’s door.

And making things even more complicated, the IF Metall metalworkers union, which represents 1,500 Saab employees, plans to send a written request for payment on behalf of its members, demanding the automaker to “react” within seven days, according to an Associated Press report.

Swedish Automobile N.V. (formerly Spyker Cars N.V) — who entered into a 30-million Euro convertible loan agreement with Gemini Investment Fund Limited to secure short-term funding for the automaker in May — and Saab, are now in search of ways to secure even more extensive support, in hopes of resuming payroll.

The two companies are currently in discussions with various parties, including the potential sale and lease-back of Saab’s Trollhatten production facility, as well as negotiations with their financiers in connection with current financing arrangements.

According to the companies, these discussions are ongoing, but there can be no assurance these efforts will be successful or the funding will be obtained.

Suppliers Say $3.6 Million Overdue

In other struggles for Saab, the automaker continues to try and negotiate with suppliers on the terms of payments, in an effort to resume an orderly flow of unit parts and components.

Production at the Trollhattan plant has suffered this spring, due in large part to the automaker’s inability to pay suppliers in full, and as a result, a lack of sufficient parts.

Latest reports note that 48 of the companies, including suppliers as well as other creditors, owed money by Saab and its parent company Swedish Automobiles, have filed with Swedish collection agency Kronofogden to collect more than $3.6 million.

In response, the automaker has requested its creditors accept 10 percent now and the remaining 90 percent in September of this year. If this request is not accepted, Saab could be forced into bankruptcy.

In addition to the recent request, it is also reported that the automaker has sent a letter to suppliers throughout the world requesting that the company be permitted to pay cash when components are delivered — or as soon as possible after delivery.

If creditors do not accept Saab’s request to pay 10 percent now and 90 percent in September, or to make supply payments with cash only, the automaker’s future may be in doubt.

Reports note the automaker might even have to dip into money acquired from Chinese firms, Pang Da Automobile Trade Co., and Zhejiang Youngman Lotus Automobile Co., companies Saab signed a memorandum of understanding with which created manufacturing and distribution partnerships in mid-May.

Victor Muller, chief executive officer of Spyker Automobile, at the time, and Saab, said of the alliance: "Having entered the MOU on May 16 with Pang Da, we collectively immediately set out to identify the most suitable (manufacturing) partner to join Saab and our joint ventures. We are convinced that Youngman represents all the qualities required to make Saab and the joint ventures a success.

“This MOU not only shows the belief of Pang Da and Youngman in our products for the Chinese market, it also is a step that significantly strengthens Saab’s financial position and would secure the mid and long term financing of Saab Automobile. Both Pang Da and Youngman have demonstrated a similar entrepreneurial mindset as we have which we feel will be instrumental to establish Saab’s presence in China. I am very confident that based on their experience, proven skills, their ability to move quickly and their financial strength, we found the partners that are best suited to fully explore Saab’s potential in China,” he continued.

Meanwhile, U.S. dealers are being affected by Saab’s trials overseas, as well.

As dealers wait to see how the story unfolds, they suffer from lack of inventory — especially apparent on the used-car side.

As a prime example, Saab’s certified pre-owned sales fell from 248 units in May 2010 to 63 units in the most recent month, according to Autodata Corp.

Saab to Participate in “Best of the Road” Rally

In more up-beat news from the automaker, it announced Thursday its participation in the Rand McNally/USA Today’s "Best of the Road" rally across the U.S. 

Five two-person teams, driving a selection of Saab automobiles, will spend the next three weeks finding the best small towns in the U.S., as the final phase of this year’s “Best of the Road” competition — a collaboration between travel information company Rand McNally and USA Today.

Each of the automaker’s teams will drive a different route from New York City to Los Angeles in a mix of Saab 9-3s, 9-5s and the new 9-4X crossover.

Along the way, each of the teams will visit some of the towns that were selected online in one of the five "best" categories: most fun, most patriotic, most beautiful, friendliest and best for food, at www.bestoftheroad.com.

Moreover, each team will post an online road-trip journal, combining blogs, as well as Facebook posts and Twitter feeds, videos and texts.The team with the best journal will earn a grand prize of a Saab 9-4X crossover and $10,000.

"What a natural fit — taking the ‘best on the road’ — a new Saab — to find the ‘best of the road,’" said Timothy Colbeck, Saab Cars North America president and chief operating officer, from the kickoff program Thursday at Liberty State Park.

"The contestants are going to be pleasantly surprised by both the cars and the great towns they will see as they make their way across the country. They may have heard of the Saab 9-5 or Emporia, Kansas, for example, but once they experience them, they will be amazed,” he continued. "The rally contestants are going to spend a lot of time in their Saabs and we are sure they will find safety, comfort, and turbo performance an exciting part of their journey.”

The 10 “rallyists” or team members earned their ticket into the event by submitting a one-minute video to Saab explaining why they deserved to participate.

They will not be competing on a time or distance basis, but on the number of towns visited along their route, the quality and originality of their journal and the quality of their category descriptions, the automaker noted.

The deadline for teams to arrive in Los Angeles is July 15.