Saab has temporarily stopped production because of problems in its supply chain

Article by Christian Andrei, on June 9, 2011

Saab has temporarily halted its production due to problems in its supply chain but aims to resume its operations as soon as possible, the company has disclosed. The company is currently facing shortages in components supply after its Trollhatten plant in Sweden was shut down in April and May due to unpaid bills from its suppliers.

Victor Muller, the company's chairman, stated that it has a few thousand suppliers from around the world, with whom it has to reach acceptable conditions and terms in order to resume deliveries of stocks. Restocking may take time, considering that many of the company's suppliers are based outside Europe.

The chairman further disclosed that the company has made deals with the vast majority of its suppliers. He is also "confident" that the company will reach agreement with the remaining suppliers "in the coming days" that will help stabilize its operations and production.

Muller informed ANP-Reuters that some of the suppliers were demanding upfront payments rather than accepting credit lines. Furthermore, he stated that he expected the production would be down for days rather than weeks.

He asserted as well that there’s no risk to the negotiations with Chinese auto dealer Pang Da falling through. Saab resumed production last May 27 after Pang Da provided a cash injection by concurring to purchase 30 million euros worth of Saab vehicle units.

Unfortunately, production halted again on Tuesday and Wednesday due to parts shortages. Saab disclosed in a Thursday statement that to prevent interruptions due to irregular inflows of certain components, it has decided to suspend production for the meantime.

Topics: saab, production

If you liked the article, share on:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016