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Saab Production Freezes Again

At the beginning of the week, another bad news hit the fans of Swedish automaker Saab, as well as its biggest customer, Pang Da: the Swedish have stopped production in Trollhattan, due to the lack of essential parts, with Wednesday being the likely day when work could be resumed.

The main reason behind the shutdown, as explained by the company' owner, Victor Muller, is the fact that during the month-long battle with its suppliers, a time during which Saab produced nothing, the suppliers themselves have stopped making parts for the Saab cars. What's interesting is that although Saab officials have admitted that production has pretty much stopped on Tuesday, Muller is not aware of them.

"It's possible that not the full capacity is used to make cars. Many suppliers did not make parts during the shutdown, some for almost two months. If you run out of parts it can impact production," the CEO of Spyker was quoted as saying by Reuters.

The financial problems which have plagued the Swedish automaker since the beginning of the year seem to have been solved, once Chinese auto dealer giant Pang Da stepped in last month. The Chinese, which will soon become production partners for Saab in China, ordered nearly 2,000 Saabs to sell in its stores.

For the cars they've ordered, the Chinese have agreed to pay around EUR45 million, a sum which has proven to be a lifeline for the car maker that seemed not to have seen the supplier storm approaching.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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