Saab cannot afford employee wages

23 June 2011 Last updated at 07:46 GMT Saab's troubles have not stopped it unveiling new concept cars Swedish carmaker Saab has said it does not have enough money to pay its employees' wages.

Owner Swedish Automobile said it was in discussions with lenders to try and obtain short-term funding.

Earlier this month, the company said it had reached a deal with two Chinese firms to invest a total of 245m euros ($350m; ?218m) in the company.

Production at Saab's main plant in Sweden is currently on hold after it was unable to pay suppliers.

"Swedish Automobile and Saab Automobile are in discussions with various parties to obtain short-term funding, including via the sale and lease-back of the real estate of Saab that was announced previously, and with their financiers in connection with current financing arrangements," the company said in a statement.

However, it gave no assurances that it would be able to obtain the funding needed to pay wages.

Swedish Automobile, formerly known as Spyker Cars, bought Saab last year from General Motors following major restructuring at the US car giant.

The company is still struggling, however, selling only about 30,000 cars last year.

Chinese hope

Saab is hoping that the provisional deal struck with the two Chinese investors will help solve its longer-term financial difficulties.

Under the non-binding deal, Zhejian Youngman Lotus Automobile would invest 136m euros for a 29.9% stake, while Pang Da Automobile would increase its investment to 109m euros, retaining its previously-agreed 24% stake.

However, the deal needs approval from Chinese and European regulators and the European Investment Bank.

If the agreement does go through, both Swedish carmakers would have Chinese ownership.

Volvo was bought by Zhejiang Geely Holding Group in August 2010.

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Ai Weiwei 'cannot leave Beijing'

23 June 2011 Last updated at 10:25 GMT Mr Ai said he could not speak to the media about his case

China's foreign ministry has said that artist Ai Weiwei cannot leave Beijing without permission, a day after he was freed from police detention.

Mr Ai - a vocal government critic - was bailed after the Chinese authorities said he had confessed to tax evasion. Mr Ai said he was unable to comment.

The 54-year-old's arrest in April sparked an international outcry.

Mr Ai was held for 80 days at a secret detention centre with no access to a lawyer or contact with his family.

Western governments had demanded Mr Ai's release and that of many other activists who have been rounded up by China's authorities in recent months, in what is the most serious crackdown on dissidents in China in many years.

Silenced?

Speaking on Thursday, foreign ministry spokesman Hong Lei outlined the terms of Mr Ai's bail, which are valid for 12 months.

"During this period, Ai Weiwei is still under investigation. Without permission... he is not allowed to leave his area of residence," Mr Hong told reporters.

He said "area of residence" meant "the city" (Beijing) and stressed that Mr Ai was not confined to his house.

He confirmed state media reports that Mr Ai had been released due to his "good attitude in confessing his crimes" and because of health issues. The artist has diabetes.

Mr Ai appeared briefly outside the gate of his studio in Beijing on Thursday.

He told reporters he was happy to be home and had not slept since being released by police overnight, adding he could not say any more to the media.

So China's most famous living artist and one of the most outspoken critics of the ruling Communist Party appears to have been silenced, says the BBC's Damian Grammaticas in Beijing.

China's police allege Mr Ai has admitted to tax evasion and promised to pay back the money.

His supporters say the charges were motivated by his activism.

News of his release has received a guarded welcome. A US state department spokesman said everyone held in China for "exercising their human rights" should be freed.

German Chancellor Angela Merkel said Mr Ai's release could only be a first step, and China must fully explain the accusations against him.

Amnesty International said his long detention without charge had violated China's own legal process.

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