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Saab Production Halted Again

Production “easily disturbed” by maker’s ongoing financial problems.

by on Jun.08, 2011

Saab's Trollhattan plant grinds to a halt once more.

Cash-starved Saab’s assembly lines have come to another grinding halt as the maker struggles to resolve a financial crisis that has shut down its headquarters plant for much of the last two months.

The news that the Trollhattan plant is down again, and likely won’t be running until at least next week – at the earliest – is a setback for the Swedish maker, which had hoped to resolve its problems with the partnership it inked last month with China’s largest dealer network.

But “the liquidity situation is still tense,” the Swedes acknowledged today, despite an initial payment from Pang Da.  A number of other issues apparently have yet to be resolved, a Saab release noted, meaning production can be “easily disturbed” in the near-term.

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“It is therefore very difficult to make further predictions,” as to when the Trollhattan plant will resume operations – and for how long, acknowledged production director Gunnar Brunius.  As a result, he said, “We have to take one day at a time. In order to avoid taking on more supplies than necessary, we have decided to reduce production plans this week. We are all working hard to get production running consistently again, and as soon as possible.”

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Saab Re-Starts Plant After Unpaid Suppliers Temporarily Halt Deliveries

Shutdown hints at other challenges facing Swedish maker.

by on Mar.30, 2011

Production of the Saab 9-5 was temporarily halted over unpaid parts bills.

Saab assembly operations in Trollhattan, Sweden got back to normal – more or less – this morning, following a day long shutdown triggered by suppliers who refused to deliver parts pending payment of outstanding bills.

Company officials insist they are working to “resolve these issues,” but there is no question the Swedish maker is struggling in its attempt to rebuild itself after nearly shutting down permanently last year.

Operations at the facility, which produces Saab’s flagship 9-5 sedan, ground to a halt, yesterday, when a number of suppliers refused to deliver more parts until they were paid.  It’s unclear precisely what arrangements were made to get those vendors to restock the plant and let it reopen this morning.

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But a statement from Saab says it “expects to resolve these issues in the short-term.”

The brief shutdown is the latest twist in an ongoing saga of a company that has long struggled for survival.  Going into its 2009 bankruptcy, former owner General Motors Corp. announced plans to sell or close Saab – while eventually also shutting down its Saturn, Hummer and Pontiac brands.  Initially, with no buyer coming through with the necessary deal, GM began shutting Saab down.

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