Saab halted production yesterday at its Trollhattan plant in Sweden after operations were disrupted by problems with supplier deliveries. Saab resumed production on May 27 after shutting down from April to May due to non existent operating capital. Suppliers became worried about receiving payment and stopped supplying the Swedish plant.
Saab began a deal with Chinese car distributor Pang Da Automobile, however that deal is still pending Chinese government approval. Saab’s previous agreement with Hawtai Motor Group fell through because of a lack of approval from Chinese authorities.
Saab is under the impression that its deal with Pang Da will go through however some analysts believe the Chinese government may block the agreement because they want to pursue a different strategy for China’s auto industry. The Chinese government wants China to export cars and become the world’s largest manufacturing base. The government is hoping to consolidate all Chinese automakers into a few brands that can develop to become global car manufacturers like GM and VW.
[Source: World Car Fans]