Saab Production back to normal after halting over suppliers problems image

Swedish automaker Saab was forced to halt production yesterday afternoon (MARCH 29) at its main plant in Trollhattan in Sweden following disputes with some of its suppliers over “payments and supply terms”.

Saab’s new Dutch owner Spyker, said production had resumed Wednesday morning at the factory in Trollhattan, in southwestern Sweden, and assured that Saab “has sufficient means to meet its immediate liquidity needs.”

Production stopped for two hours yesterday, from about 2 to 4 (because of) a transport company that wanted better payment,” he told Reuters.

Speaking with TT on Tuesday, Saab spokersperson Eric Geers refused to elaborate on the payment problems or a stoppage on the assembly line.

“We have 800 suppliers and I can’t comment on our relations,” he said.

“But, with so many suppliers, it’s not strange that there can be stoppages.”

The incident comes the week after Saab announced that its managing director Jan-Aake Jonsson was leaving for personal reasons.
Spyker also announced Friday that its losses had multiplied in 2010, soaring to 218 million euros ($309 million) for the year, against a loss of 23 million euros in 2009.
Spyker said it still expects to sell 80,000 cars in 2011 and 120,000 cars in 2012, which should allow the car maker to turn a profit.

The Trollhattan plant currently builds the new 2011 Saab 9-5 sedan and new SportKombi station wagon, along with the aging Saab 9-3 line of sedan and station wagon models.That plant’s capacity is 190,000 vehicles at full production volume.