Saab to resume production on Friday - report

 Saab to resume production on Friday - report
Saab 9-4X - 11.17.2010

Saab restarts production at its Trollh?ttan plant in Sweden with an initial run of 100 units on Friday

Swedish automaker Saab has resumed production today after a long delay due to a lack of operating capital that threatened to topple the company.

Production was restarted at Saab's production plant in Trollhättan, Sweden, on Friday where an initial batch of 100 cars will be rolled off the assembly line. By Monday production will be back to a normal 218 units per day. On hand were Victor Muller, CEO of Saab, as well as Mr. Pang Qinghua, Chairman and CEO of Pang Da Automobile, the Chinese car distributor which has invested in Spyker Cars, owner of Saab, and saved the Swedish automaker.

The deal brought Saab a much needed €30 million in cash up front, in exchange for 1,300 vehicles for a Chinese automaker to distribute in China. That firm, Pang Da Automobile,would receive a 24 percent stake in Dutch-based Spyker Cars and an additional batch of Saab vehicles to distribute in China should the €110 million deal be approved by various government parties.

The first cars produced were a silver Saab 9-5 Aero XWD and an orange 9-3 convertible Independence Edition.

The production plant has every reason to get busy now, given the back order of around 8,100 vehicles it must produce, which includes the 1,300 cars for Pang Da Automobile.

"This is a great day for our company and it is great to see the plant running again. We have gone through a rough patch in recent weeks, but Saab is back in action again," said Muller.

Source: Reuters

SAAB AUTOMOBILE RESTARTS PRODUCTION

  • First cars roll off Trollhättan production line
  • Order bank of over 6,500 cars for Trollhättan factory, over 8,000 cars worldwide

Trollhättan, Sweden: Saab Automobile today restarted production at its production facility in Trollhättan. A first batch of around 100 cars is planned for this first day of production since April 6 and Saab Automobile plans to increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain.

Attending the restart of production were Victor Muller, CEO and Chairman of Saab Automobile, Mr. Pang Qinghua, Chairman and CEO of Pang Da Automobile, and Gunnar Brunius, Saab Automobile's Vice President Purchasing & Manufacturing. The first cars to roll off the assembly line were a silver Saab 9-5 Aero XWD and an orange Saab 9-3 Convertible Independence Edition.

With production restarted, Saab Automobile will now focus on building and delivering the thousands of cars ordered by customers around the globe. As the assembly line was fired up again, the total number of outstanding orders from markets worldwide for the Trollhättan factory amounted to over 6,500 cars. The total order bank, including around 1,600 Saab 9-4X orders, amounts to over 8,100 cars. This number includes the almost 1,300 cars that were ordered by Pang Da Automobile and for which it paid EUR 30 million up front.

Watching the first car roll off the line, Victor Muller said: "This is a great day for our company and it is great to see the plant running again. We have gone through a rough patch in recent weeks, but Saab is back in action again. I would like to express my deep gratitude to our fantastic suppliers who have worked so hard with us to make this happen, and to our loyal employees who have constantly stood by our side."

"We will work hard in the coming period to regain confidence and show our ability to become a successful car maker. We are fortunate that we are in the middle of the largest-ever product offensive in the company's history. Last year we launched the all-new Saab 9-5 Saloon, while the 9-3 model year 2012 range went on sale earlier this year. The new Saab 9-4X, our first crossover, has enjoyed raving reviews from motoring media and we already sold all 9-4X cars for model year 2011. After the summer, we start delivering the much-awaited Saab 9-5 SportWagon to customers."

Gunnar Brunius added: "I am very happy to see our plant in operation again. This is a highly important moment for everyone at Saab Automobile, especially for our loyal people here in the plant who have eagerly waited for this day. Given the complexity of re-establishing our supply chain there will most likely be some hiccups during this start-up phase, but we will work hard together with our suppliers to minimize any disruptions to production in the coming weeks."

 

Add a Comment

Comments (4)

Subscribe to comments
 coopergt coopergt
I am waiting for the 9-5 combi to come to the USA
May 27, 2011 10:07 am
 Microice Microice
Now that they are back in business they really should consider that 9-1 for production.
May 27, 2011 12:07 pm
 DdW DdW
This is good news and with some Chinese backing, I hoped Saab will return to profitability as soon as possible (as long customers has an interest towards the carmaker's vehicles).
May 28, 2011 6:48 am
 radmeister radmeister
Saab is not one of those impulse buy car companies, nobody that has never had a saab before or been in one wakes up one day and decides i'm gonna go check out what Saab has to offer. Because of this they need to first improve their customer relations and parts logistics/prices...I mean 7-10 business days for a part to come in is ridiculous, 45$ to get it shipped over night, and prices for parts are 2x what they were 2 years ago..I personally wouldn't buy a Saab right now because of the service cost and time, also they are GM bullshit, the power steering return hose cracked on my car, cost me 212$ for a stupid 3ft long rubber hose with a 6" angled metal pipe and fitting at the end. The old hose was riddled with GM labels on it, and so was the new 1. I had a tear in my eye when i paid 212$ for it, and I full out cried when i saw the new 212$ hose still was a GM part...
May 28, 2011 10:23 am