Less than a week after Saab idled its Trollhattan plant in Sweden for a few days due to a shortage of parts after failing to pay suppliers, the company once again halted production on Tuesday for the same exact reasons, despite solving the previous disputes.
“Production is stopped right now. It was stopped this morning,” said Saab spokesperson Gunilla Gustavs. “We are working intensively to make sure the flow gets going again. We are having discussions with suppliers and doing our best to come to mutual agreements,” Gustavs added.
And from the looks of it, the situation is far from over as Spyker Car N.V. and Saab CEO Victor Muller told ANP-Reuters that more production line interruptions are expected.
“This is an ongoing thing. It will take some time to get everyone back in line properly. We will get it under control,” said Muller.
FKG, an organization that represents companies that supply parts to Saab said four or five of the largest suppliers halted deliveries due to unpaid invoices. “They [Saab] cannot pay their bills,” said Svenake Berglie, chief executive of FKG. “Saab must sort out its financing.”
In press conference on Monday, Spyker and Saab executives tried to address fears about the Swedish automaker’s future by saying the company is nearing an agreement to secure additional funds.
Source: Reuters
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