Saab says production will be halted at least two more weeks

Article by Christian Andrei, on June 21, 2011

The suspension of Saab’s production at its factory in Trollhattan, Sweden, will be extended for at least two more weeks. Saab is owned by Netherlands-based Swedish Automobile (formerly known as Spyker). For most of April and May, this factory was shut down since it lacked inventory as it had not been able to pay its suppliers.

Although production resumed in late May, its parts supplies had ran out and it had to stop again. Saab spokeswoman Gunilla Gustavs said that there still won’t be normal production during weeks 25 and 26 (June 20-July 3).

Last June 9, Swedish Automobile said that Saab's production will be halted until it secured an agreement with all its suppliers. Gustavs said that negotiations with the suppliers are still ongoing. He said that Swedish Automobile is trying to “get everyone on board at the same time."

He announced that production for the 27-29 weeks (July 4-24) is expected to already be normal. If authorities in China and Europe approve the rescue deals that Saab has entered in the past few weeks with two Chinese car companies, Zhejiang Youngman Lotus Automobile Co. and Pangda, then its mid and long-term financing problems will be solved.

However, Saab still considers short-term financing as a problem. To have the cash to restart production, Saab is hoping that its factory will sell quickly.

Last Monday, Swedish business daily Dagens Industri said that talks had taken place last weekend with Swedish property company Hemfosa for a sale and leaseback deal for Saab’s plant and property in Trollhattan. Hemfosa is reportedly willing to pay about 300 million Swedish crowns ($46 million) for these properties.

Topics: saab, production

If you liked the article, share on:


Login or Create new account to add a comment!


Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016
The recent motor show has given us a lot of promising vehicles to look forward to for the time being. After we caught a glimpse of the future of motoring,...
by - October 19, 2016