Saab supplier woes continue

14 June 2011

14 June 2011 | Angeline Albert

Saab Automobile has again been forced to halt production at its main plant in Sweden having failed to satisfy suppliers over payment terms.

Just two weeks after the carmaker restarted manufacturing after a seven-week shutdown at the facility in Trollhättan in Sweden, a shortage of parts from vendors has forced another stoppage. A spokeswoman for Saab’s parent company, Spyker Cars, said some suppliers were withholding deliveries due to concerns about the company’s financial status.

“The discussions with suppliers are still ongoing and the financial state of the company is a factor here. Production was down for seven weeks and that has also had an effect on our suppliers. Suppliers have concerns about the financial situation both the short and long-term,” said Gunilla Gustavs.

No date could be given for a potential restart. “It takes time to negotiate with suppliers and the process continues," she said.

Disruptionto operations began at the end of March when deliveries from some vendors were stopped because of complaints over payment. Following a foreign investment deal, it was hoped an agreement could be reached with suppliers, and subsequently production resumed.

A statement from the auto manufacturer said “negotiations with a number of suppliers on payment and delivery terms are still ongoing”. There were 8,100 orders for cars from the affected factory at the end of May.

Spyker was this week boosted by further investment from China, with Zhejiang Youngman Lotus Automobile Co taking a 29.9 per cent stake in the company in return for €136 million (£119.8 million).

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