Saab still doesn’t know when it will restart production

Article by Christian Andrei, 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

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