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Saab Working On Getting Production Back On Track

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Saab Working On Getting Production Back On Track

William Maley - Editor/Reporter - CheersandGears.com

May 18, 2011


Related: Saab Has Been Saved Once Again

Saab is hoping to get production back up at their Trollhaettan plant sometime next week.

"Our ambition is to restart production some time next week, but it's very hard to make a prognosis," said Saab's Production Chief, Gunnar Brunius in a phone interview.

Brunius said the company will begin talks with suppliers about sorting out debts and possible repayment plans. The talks will decide whether production will begin next week or not.

According to Svenake Berglie, head of Swedish auto supplier group FKG, Saab owns Swedish suppliers a minimum of 300 million kronor ($47.2 million) and about the same amount to foreign suppliers.

Saab's supplier problems began back in late March when production was stopped due to suppliers not being paid. Victor Muller, Saab's chairman and Spyker's chief executive said on April 4th that the issue with suppliers was "under control". A day after after Muller's announcement, production stopped again and has lasted for seven weeks.

The news of production starting back up comes only after a few days when Saab and Chinese vehicle distributor, Pang da Automobile Trade Co., announced a partnership. The partnership is awaiting approval from the Chinese government.

Source: Automotive News (Subscription Required)

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