REPORT: Saab production halted, customs authorities want their money!
by Sam Abuelsamid on Feb 25th 2009 at 4:25PM 
New reports this afternoon indicate that Swedish tax authorities have effectively shut down Saab until the automaker pays back unpaid customs duties. Many of the parts that make up today's Saabs are sourced from suppliers and General Motors plants outside of the European Union, and customs officials have halted the shipment of those parts. Without a supply chain, the Trollhättan plant has been forced to stop production.
According to The Local, an English-language Swedish news outlet, Saab's production manager, Gunnar Brunius, hoped to have the situation resolved by this evening. But the fact the duties haven't been paid is a sign of the cash flow problems at parent company General Motors. Customs officials haven't disclosed how much money is owed other than to say the amount is "considerable."
Earlier this week, Saab filed for the Swedish equivalent of Chapter 11 bankruptcy protection. If GM is unwilling or unable to pony up the cash to pay the bills, Saab will have to find another benefactor. The Swedish government already rejected a bailout last week, so Saab's future is increasingly unclear. Is this the end of the Griffon? Hat tip to Sven.
[Source: The Local | Image: Olivier Morin/Getty]
Reader Comments (Page 1 of 3)
TigerMil 4:39PM (2/25/2009)
$$ issue...if the cars/production is worth more profit than the $$ GM has to cough up, GM may cough it up. I'll bet some settlement will be made. OTOH, GM can't make any profit on the cars (Saabs) unless they can sell them. Aye, and there's the Wub!
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The Other Bob 5:21PM (2/25/2009)
So in other words, the Sweedish government may end up owning Saab whether they like it or not.
Swede 5:28PM (2/25/2009)
The Other Bob: Nope, Saab havent gotten any guarantees from the goverment so if they run out of money they simply shut down. Volvo may however come under swedish state ownership since Volvo have offered their factories and the equipment in them as safety for the loan guarantees that the goverment have offered.
If Saab fails, the goverment ends up paying anyway. But remember, our minister responsible for this drives a MK1 Ford Focus. She doesn't care.
Other figures, the Swedish goverment aquired 26% of their new cars from domestic carmakers last year. The figure for France and Germany is 98%.
Menice 4:39PM (2/25/2009)
balls.
that aint good.
isnt there some real rich rich guy living there to bail them out?
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sk 4:44PM (2/25/2009)
Some ABBA dude or the Ikea owner have plenty to share
Sean 6:45PM (2/25/2009)
Sweet. Saab's made out of particleboard and sold in flatpacks!
Jj 4:42PM (2/25/2009)
I had a 84 900 Turbo SPG in High School and the beginning of college. I absolutly loved it. Unfortunatly during college it needed a lot of expensive work that I couldn't afford and I had to let it go. I wanted to store it my folks house until I could afford to get it back on the road but they wouldn't go for it.
However since that generation of 900 ended after 92 Saab hasen't build anything too complelling, Basically under GM's watch (1990 I believe to present) something has been lost.
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MJL 4:42PM (2/25/2009)
Just what we need. Could they POSSIBLY have picked a worse time
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mapoftazifosho 4:45PM (2/25/2009)
What? Do you think this was just a timing issue?
MJL 4:47PM (2/25/2009)
Guess it could have been the fuel pump or the exhaust too not really sure have to put it on the lift first
Franz 4:52PM (2/25/2009)
LOL. Brilliant comeback MJL.
Mobius_1 5:46PM (2/25/2009)
Well, whatever the issue, the repair bill will be huge.
MJL 5:49PM (2/25/2009)
Unless you take it to a Saab independent mechanic they're famous that's why I'm not worried about parts even if this company stops existing blah blah blah
steve-o 4:44PM (2/25/2009)
someone get Porsche on the line!
save the Swedes!
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KC 4:49PM (2/25/2009)
Name one product that VW or Audi isn't building one that is better.
Enok 4:49PM (2/25/2009)
Previous recessions didn't kill auto marques. Why this time?
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Franz 5:02PM (2/25/2009)
I'm no expert by any means, but here's my theory:
In previous years, automakers didn't diversify their product lines so much. They kept it simple. Now with everyone trying to make a crossover or SUV, and trying to go mainstream with their regular product lines, they're all basically competing for the same slice of the pie... and it's not big enough. Nobody does different anymore. Back in the day, manufacturers like Saab would have probably been left to die on their own when their time came, but when times were good the bigger marques like GM bought up stake in a smaller companies like Saab and in my opinion, didn't do enough to make them profitable. Now (IMO) Saab is like an anchor (one of several) around GM's neck.
In previous years, marques like Saab had their own little niche in the marketplace. They were never the best cars but they were always quirky and distinctive, and they had a cult-like following. There's nothing too distinctive about Saab anymore, and they're still not the best cars in their class.
Len_A 5:22PM (2/25/2009)
Franz, what you said is only partially correct. It's not only a problem of the auto makers diversifying their product lines too much, it's also the bloody market place driving the auto companies to diversify or watch their customer base flee to whatever the latest trend is. You think Porsche, for example, really wanted to build a Cayenne SUV or a 4-door Panamera ? It was either diversify or watch their customers changing tastes find satisfaction with another brand.
letstakeawalk 5:31PM (2/25/2009)
And anyway, we have lost plenty of automakers during the lean times:
Auburn, Cord, Duesenberg, Pierce-Arrow, just to name a few. The US has lost hundreds of automakers over the years.
http://en.wikipedia.org/wiki/List_of_defunct_United_States_automobile_manufacturers
Mobius_1 9:06PM (2/25/2009)
Cause GM bought Saab?