Saab Production Still Halted, Company Seeking Additional Cash

April 8, 2011
Saab 9 5 Assembly Line
View All (6) Photos
Production of Saab vehicles in Sweden is still halted due to supplier shortages, and the company is working to secure enough funding to pay overdue supplier invoices. According to Automotive News, Saab is now seeking the release of collateral in Swedish government-backed loans to free up additional money.
The report says Saab would use the collateral to help pay suppliers, which claim they are owed tens of millions of crowns -- several million U.S. dollars. Saab reportedly received a €400 million loan from the European Investment Bank. In a statement issued yesterday, Saab confirmed the company was suffering “shortages in material shipments” and said, “We continue to discuss payment and supply terms with our suppliers and expect to resolve these issues in the very near future.”
Saab spokeswoman Michele Tinson wouldn’t comment on the status of loans, but confirmed that vehicle production lines are still halted as of Friday and said, “We’re hoping to have good news soon.” She said earlier this week that the delays at Swedish factories wouldn’t affect deliveries of new Saab vehicles to the U.S.
Sources: Automotive News (Subscription required), Saab

Comments

Photo Gallery