Saab production temporarily halted by unpaid suppliers *UPDATE

Yesterday, Saab was met with a slight production hiccup. The Swedish automaker's parent company Spyker Cars confirmed that production briefly ground to a halt at its Trolhättan assembly plant when a number of suppliers stopped the flow of parts due to non-payment of bills.
Saab says it "expects to resolve these issues in the short term," and workers resumed production this morning. Any cessation of production invariably costs an automaker big bucks, and even though the stoppage was very short in duration, its understandable that other suppliers and analysts might have the jitters about whether Saab's financial position is stable.

Given that Spyker recently sold its own automotive unit to CPP, Saab should have enough cash on hand to pay the bills, although the automaker itself announced a nearly $200 million loss from last year. Follow the jump for the official announcement.

*UPDATE: Automotive News reports that Saab's factory was idled for a second time on Wednesday, but the company vows to once again fire up the lines on Thursday, having remedied delivery and payment schedules with one of its suppliers.

[Sources : Spyker/Saab, Automotive News – sub. req.]
Show full PR text


Zeewolde, The Netherlands, 30 March 2011 - Spyker Cars N.V. (Spyker) announces that after a short production stop at Saab Automobile yesterday afternoon, this morning production re-started again.

Certain suppliers halted supplies to Saab Automobile pending discussions about payments and supply terms. Saab Automobile expects to resolve these issues in the short term, also to prevent any further disruptions in supply. Saab Automobile has sufficient means to meet its immediate liquidity needs from existing and available sources. In addition, Saab Automobile continues to work on longer term solutions to further strengthen its financial position and improve its capital structure.

Share This Photo X