Saab to resume production next week

Article by Christian A., on April 19, 2011

Sweden-based automaker Saab aims to resume operations by next week after they were halted due to shortages in components as suppliers stopped deliveries over unpaid bills, the company’s vice president for global sales, Matthias Seidl, said in an interview in New York.

Seidl, who is also serving as interim chief executive officer of the Saab’s operation in North America, stated that the company is in discussions with suppliers with the hope of getting components once again by the end of this week.

On March 29, the company suspended its manufacturing operations when its suppliers demanded payment of the overdue bills and stopped the deliveries of components.

On April 14, Saab CEO Jan-Aake Jonsson disclosed that the company’s liquidity "became more strained" during the second half of the first quarter this year.

Last week, the government of Sweden approved a conditional financial plan for Saab which will release collateral used by the company to back a loan from the European Investment Bank.

The bank still needs to clear the financial plan, industry minister Maud Olofsson of Sweden said last week.

Once the plan is approved, the company can have some breathing space while awaiting government decision on whether Russian banker Vladimir Antonov can be an investor once again for the company. Saab Automobile is a subsidiary of Netherlands-based Spyker Cars NV.

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