Saab still doesn’t know when it will restart production

Article by Christian A., on June 20, 2011

Saab disclosed on Monday that it can’t predict when it could resume operations and build vehicle units again. According to spokesperson Eric Geers in an interview with Reuters, the staff is in place but there is no definite date as to when the company can restart output.

Operations at the automaker's Trollhatten plant in southern Sweden was halted for most of April and May due to unpaid bills to suppliers, which refused to deliver components.

The company started building vehicles again late in May. Unfortunately, it was forced to halt operations quickly once more when inventory ran out.

Spyker Cars, which owns Saab, said last June 9 that the automaker's operations would be halted until it can secure a deal with all of its suppliers.

Geers refused to give a comment on a newspaper report on Monday mentioning that negotiations had been held over the weekend with Hemfosa, which is a Swedish property company, on a sale-and-leaseback agreement for Saab's plant and property in Trollhattan.

Based on the report of Dagens Industri, a Swedish business daily, Hemfosa was prepared to pay approximately 300 million Swedish crowns ($46 million) for the automaker's real estate.

Lately, Saab has agreed to a rescue package from two China-based car companies, Pangda and Zhejiang Youngman Lotus Automobile Co., which, if approved by the Chinese and European authorities, will solve its financing problems, except for short-term financing issues, which remain a problem.

Meanwhile, the company is putting its hopes on a quick sale of its plant to gain the cash it needs to resume production.

Topics: saab, production

If you liked the article, share on:

Comments

Recommended

Not so long ago, the 2018 Genesis G80 Sport made its debut at the 2016 LA Auto Show. But at that time, it did not have a price yet. And...
by - April 23, 2017
It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries