Thursday, 21 July 2011

Saab extends production halt due to lack of parts

Saab has extended its production stoppage to the end of August or beyond as it struggles to secure the necessary parts from suppliers.
Saab ceased making cars in April after suppliers stopped deliveries due to unpaid bills. It has since won funding from two Chinese companies and clinched a sale and leaseback of property with a Swedish firm but has yet to restart production.

Dutch-listed parent Swedish Automobile said on Thursday that delivery of all the required parts had yet to be agreed with suppliers and production would not resume until the end of August at the earliest, as opposed to an earlier plan of Aug. 9.
"The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time," Gunnar Brunius, Saab's vice president of production and purchasing, said in the statement.
Swedish Automobile shares were down by 17 percent at 1.702 euros at 1408 GMT, the biggest faller on Amsterdam's bourse.
Swedish Automobile also said it and Saab continued discussions with parties to obtain further short-term funding to be able to restart and sustain production at Saab's plant in Trollhattan, where it has orders for some 11,000 vehicles.


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