As Saab continues to work on securing auto components from suppliers, it made an announcement that it will extend its production hiatus further to the end of August or even beyond.
Saab stopped production last April when it had failed to pay the bills and suppliers stopped deliveries. Since then, Saab was granted funding from two China-based companies.
It also entered into a sales and leaseback deal with a Swedish company but even with these, production has yet to resume.
Last Thursday, Saab’s parent Swedish Automobile said the agreement with suppliers on the delivery of all the auto parts has yet to be finalized. There was a plan for production to restart on Aug. 9.
In a statement from the company, Gunnar Brunius, Saab's vice president of production and purchasing, said that due to the summer break of its suppliers, they might not be able to deliver what’s needed in time.
As a result, Swedish Automobile shares fell by 17% at 1.702 euros at 1408 GMT, the steepest fall in Amsterdam.
Talks are still ongoing between Swedish Automobile and Saab with parties to get additional short-term funding to be able to resume and maintain production at Saab's plant in Trollhattan. This plant has so far, taken orders for about 11,000 vehicles.