Sunday, July 24, 2011

Saab Further Delays Production Restart Due to Lack of Parts

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Saab announced today that it is still in discussions with its suppliers over supply and delivery terms in order to restart production at its Trollhattan factory.

Yet, as the Swedish automaker tries to secure short-term funds, it isn't able to guarantee that production will commence on August 9 as Saab's new plan had initially called for, postponing the date to the end of August.

Gunnar Brunius, Vice President of Production and Purchasing, said:

"I am positive about the progress we made on the payment terms with our suppliers. What we need now is a full commitment on supply of parts into our factory to be able to restart production and secure a stable manufacturing operation. We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books”.

Saab’s production came to a halt during April and May, resumed temporarily and finally stopped once again on June 8. During the past few weeks, however, the automaker managed to secure financing from three different sources, making it possible to start paying its workers again and negotiate with its suppliers.


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