Official: Saab to restart production today image

Swedish automaker Saab Automobile said that it will restart its entire production from this Friday, after a near seven-week standstill caused largely by payment problems to its suppliers.

Saab’s vice president of purchasing and manufacturing, Gunnar Brunius, told Swedish business newspaper Dagens Industri, “We have decided to get going on Friday and we are going to do everything we can to get this moving.”

A first batch of around 100 cars is planned for this first day of production since April 6 and Saab Automobile plans to increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain.

Last week, a Chinese car dealership offered a cash injection to help Saab continue production. Pang Da Automobile Trade paid US$43 million for the delivery of 1,300 vehicles to Shanghai, but problems with suppliers are reported to remain.

Spyker CEO Victor Muller, who is also the chief executive and chairman of Saab, called the startup “a great day” for the Swedish company.

“We have gone through a rough patch in recent weeks but Saab is back in action again,” Muller said. “We will work hard in the coming period to regain confidence and show our ability to become a successful car maker.”