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Saab Halts Production - Again


Saab Halts Production - Again

Author: ReutersDate: 6 April 2011

STOCKHOLM (Reuters) - Saab announced it has halted vehicle production again due to material shortages and that it continues to hold discussions with suppliers after reassuring investors about its finances.

"Production is stopped right now," said Gunilla Gustavs, spokeswoman for Saab.

"We are working intensively to make sure the flow gets going again. We are having discussions with suppliers and doing our best to come to mutual agreements."
She declined to say how long the production stoppage would last.

The Swedish carmaker's owner Spyker Cars NV said on Monday that last week's three-day stoppage due to unpaid bills was a small glitch, which the company would survive.

According to the organization representing companies that provide parts to Saab, several of the bigger suppliers to the automaker have stopped deliveries due to unpaid bills. 

Svenake Berglie, the head of the FKG suppliers' sector organization, said four or five companies had stopped deliveries.

"They (Saab) cannot pay their bills," he told Reuters. "It is very, very unfortunate," he added. "Saab must sort out its financing."

On Monday, Spyker CEO and Saab Chairman Victor Muller said that Saab was still producing and insisted the carmaker was ''not on the verge of collapse.''

Muller said Saab will by next year have the widest and newest model range in its history and he repeated a forecast that output this year would be 80,000 cars and Saab would be profitable in 2012.

Production this year would be weighted heavily to the latter end of 2011.

Muller told ANP-Reuters today that the company expects to have more interruptions in production.
"This is an ongoing thing. It will take some time to get everyone back in line properly. We will get it under control."

 

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