• Apr 7th 2011 at 2:33PM
  • 19
The negative news for Saab continues to spill out, and the latest bit of gossip continues to paint a dark picture for the Swedish automaker. Reuters reports that parts suppliers are looking to collect on "tens of millions of crowns" in unpaid invoices (10M crowns is around $1.58M U.S. dollars).

Work stoppages and missed sales targets have folks speculating that things aren't going as planned for the Spyker-owned company. Now, this news of Saab being unable to pay those supplying parts only adds fuel to the fire and suggests that production at its Trollhättan plant may not resume soon. For its part, The Wall Street Journal is reporting that production probably won't resume until next week – if Saab can come to terms with its suppliers.

The total amount of money that Saab owes has not been verified, but it's apparently enough that suppliers are no longer willing to continue to provide parts until the financial issue has been cleared up. The issue could simply be that a few key suppliers are wary of Saab's slow sales and are increasingly unwilling to extend the automaker credit, or it could be that Saab has fallen well behind on its obligations – or it might be a combination of the two.

Saab had previously repeatedly stated that its business plan is fully financed through 2012. Top tip, Louis!

[Sources: Reuters, The Wall Street Journal – sub. req. | Image: Fabrice Coffrini/AFP/Getty]

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    • 1 Second Ago
      • 4 Years Ago
      Looks like Trishield has given up Saab bashing.
      • 4 Years Ago
      • 4 Years Ago
      Why is there this relentless SAAB bashing and I agree mostly from its own people (Doh!!)
      The company got bad cos of GM who destroyed its image by helping to produce lack lustre cars after SAAB use to make amazing cars. They couldn't stand it going to far up market cos someone wanted to sell Cadillacs in Europe DOH!! Totally misunderstanding the brand.
      Now an enthusiastic Dutch Guy buys it, and yes it is not easy trying to start production again and develop a new car at the same time as rebuilding the brand but he is giving a good go at the moment.
      So heh critics why not look at all the other companies that have stoppages on there lines regularly dont just pick out SAAB…….Basically Give the guy a break he has done nothing wrong apart from try and keep a brand alive and save an awful lot of jobs and not just in the factory either………..
      • 4 Years Ago
      A fully financed plan =/= financed action.
      • 4 Years Ago
        • 4 Years Ago
        Just passed 200,000 on my 2002 Saab 9-5 Aero. This car is flawless!! 250hp and 31 MPG hwy. Safe, quick and extremely reliable. Give Saab a chance, trust me they are waaaaaay better than the press gives them credit for! There are small under the radar things that distinguish them over years of driving i.e.: 7 coats of age-defying paint, ageless interior, ageless best in class leather, reliability on a 200,000+ car (we all know Audi, BMW, Volvo, VW cannot claim this), spring loaded oil leak-free dip-stick, massive alternator and radiator, massive engine sway bars, Direct Injection on a 2002 model!, most powerful climate control I have ever seen (defrosts windows immediately), great handling, blistering acceleration 30-80, perfect ergonomics, solid thud when you close the door, locks in reverse so you can't hot-wire it, cool style, I could go on. They really are great cars!

      • 4 Years Ago
      Waiting for Trishield to make his obligatory appearance...
      • 4 Years Ago
      I love saab but when you price out their cars its like meh I rather get the bmw,benz.audi for a bit more with slightly less features.

      The luxury brand game is hard I feel bad for Saab and love their style. Just wouldn't put down my own cash one.
      • 4 Years Ago
      According to this link:

      The amount in question is something in the neighborhood of $5M (or 3.3M Euros). Not a lot in the grand scheme of things. Stories I have read elsewhere this week already mentioned a work stoppage until Tuesday the 12th, so this really isn't breaking news. All the same, it's a black eye for Saab, who are frankly mis-handling a supplier issue which has been compounded by anti-Saab press within Sweden.

      Having been on both sides of this issue with my own business, this sure sounds like a cashflow problem, and if I had to place a bet, I'd say it was the supplier facing the cashflow crunch, not Saab. The cars are indeed selling, the purchase from GM to Spyker was fully funded and further backed by the EIB bank, and endless due diligence was performed by Deutsche Bank, the government of Sweden and by GM accounting before each of them signed off on the sale. There are good things happening with this company, but it's these stumbles that seem to get most of the attention.

      Make no mistake, I am a Saab fan but I'm not blind to the fact that they face an uphill climb-- the deck is pretty stacked for any niche brand in a crowded marketplace . PR flaps like this only make things harder for them in the minds of potential buyers. They have the talent and the product to be able to pull this off. I hope that they do.
      • 4 Years Ago
      Where there is smoke, there is fire. I own a 2004 9-5 Aero Wagon and I know that I will get virtually nothing for it when I sell it or trade it in. Anyone who would buy a SAAB right now frankly would have to be crazy. I have been a SAAB fan for quite some time (notice the user name) but even I believe feel the brand has completely lost its way and will probably go under. When the Jan-Ake left a few weeks ago the writing was on the wall.
      • 4 Years Ago
      Which automobile would I choose, if your pricing is correct I would still take the SAAB. Considering Audi's look like everything else on the road and will spend a considerable amount of time at the shop I would take a turbo 4 premium 95 done up to the brim with a little bit of hirsch tuning for good measure any day of the week.

      In regards to SAAB garnering so much negative press for a supplier issue/non payment is completely unfair as almost every other manufacturer has gone through similar situations.

      SAAB will come out of this stronger then ever.

      I am also waiting for Trishield's obligatory derogatory comment to post!

      • 4 Years Ago
      I am not interested in Saab cars, but I still hope they don't end up in a vicious cycle. My concern is also what N said, Saab 9-5 is damned expensive car here in the eastern neighbor as well. Audi A6 and BMW 5-series are just about the same price as Saab and those are both better cars than Saab with a same price tag. It is difficult to pay premium for an "Opel".
      • 4 Years Ago
      I have a buddy who sells SAAB's here in Michigan and he told me a few weeks ago that the factory is slow paying the dealers rebates and reimbursing them for warranty work. They also are very slow to pay the sales staff for sales targets and CSI (consumer satisfaction index) bonuses.

      It's a shame though because the product that SAAB has comming is great. I really like the upcomming 94x and I hope it gets the chance to see the market.
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