Saab stalls production until August 29th

Posted on Saturday, 23 July 2011 , 08:07:23 byLucia

Filed under saab-productionsaab-production-stallingsaab-chinaSaabChina

Saab stalls production until August 29th

Saab's rough period has not ended yet, but its enthusiasts still have the hope that it will soon recover from its shortages. Saab succeeded in obtaining $58 million of which about $40 million come from sale activity and lease back deal, while $18 million were for car sales. According to Saab's representatives, the blame somehow belongs to the traditional supplier Summers shutdowns, which resulted in the company's alignment impossible to find its place for the restart, postponing the start of production on August 29th. Although Saab did not mention the losses of the five months of production chaos, they announced that they still had 11,000 orders to fulfill.
A binding agreement of an estimated $350 million with Chinese companies Youngman and Pang Da was signed by Saab earlier this month, aiming for joint distribution and production in China. This agreement gave no reasons to doubt the restart of production properly for the first time since April, but it appears that it won't, although no more than $142 million went into Saab;s pockets in the last month. Gunnar Brunius, Vice President of Production and Purchasing, stated that he was positive about the progress they had made on the payment terms with their suppliers and what they needed at the moment was a full commitment on supply of parts into their factory in order to be able to restart production and secure a stable manufacturing operation. He also announced that they were seriously working with their suppliers to nail down those plans and commit to a delivery schedule and start building the close to 11,000 cars that they had in their order books.


Saab stalls production until August 29th image