Saab Production Will Remain On Hold For Another Two Weeks

Saab Production Will Remain On Hold For Another Two Weeks

Saab’s ongoing drama will remain at a standstill for another two weeks. Saab’s Trollhattan factory in Sweden, has not produced vehicles for most of April and May because of issues regarding paying suppliers. The factory bounced back in late May, but was quickly forced to stop production when part supplies ran out yet again.

“There will be no normal production during weeks 25 and 26 (June 20th-July 3rd),” Saab spokeswoman Gunilla Gustavs said.

In the last few weeks, Saab made agreements with two Chinese Car companies, Zhejiang Youngman Lotus Automobile Co and Pang Da which, if approved by Chinese governments, will solve its mid and long-term financial issues.

“We are still negotiating with all suppliers and we need to get everyone on board at the same time,” Gustavs said. “The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks”.

Saab has spoken with Swedish property company Hemfosa on a sale and leaseback deal for the Swedish plant. Hemfosa was prepared to pay around $46 million for Saab’s properties. If this quick sale goes through, Saab will have the finances to restart production.

“There is nothing new that we can communicate,” Gustavs said on its building sale plans. “That is still being negotiated.”

[Source: Automotive News]