LOG IN

Share

Saab's sad stop/start production tale continues

 Saabs sad stop/start production tale continues
Saab resumes production, first Saab 9-5 saloon down line, Trollhättan, Sweden, 22.03.2010

Problems with supplier deliveries halted production on Tuesday at the Trollhattan plant in Sweden

Saab had to stop production again on Tuesday at its Trollhattan plant in Sweden after operations were disrupted by problems with supplier deliveries.

The company said production was set to resume on Wednesday.

Saab restarted production on May 27 after a shutdown for most of the months of April and May due to its lack of operating capital. Suppliers worried about getting paid stopped supplying Saab's Swedish plant.

Surprisingly, Victor Muller, CEO of Spyker Cars, Saab's owner, said to Reuters that he hadn't heard of the shutdown.

Saab now has fresh operating capital due to an investment in Spyker Cars by Chinese car distributor Pangda Automobile. But that deal is still pending government approval in China. A previous deal with Hawtai Motor Group of China fell through because of a lack of approval from Chinese authorities.

Saab believes its deal with Pangda will go through but some analysts think the Chinese government might block it because they want to pursue a different strategy for China's auto industry. It's no secret that the Chinese government wants China to export cars and become the world's core manufacturing base. Its strategy is to consolidate Chinese automakers into a few brands that can be nurtured and developed to become global players like GM and VW.

Source: Reuters

Related Articles

Add comment

subscribe to comments
comment rules Add comment

Comments (9)

shaahinmt
i would love to be working for saab right now; getting paid to stand around :)
Jun 8, 2011 11:42 pm
0 0
A
Yep, any car in production that has say 5000 parts in it needs ALL of them...100%. No parts means no moving line means no cars means no money means...?? The CEO should know or be told immediately. It looks very amateurish to say the least.
Jun 8, 2011 10:52 pm
0 0
Microice
Muller needs to get off the glue if he hadn't heard of the production shut down. A Chinese car company would have to shake off the rep that China makes cheap imitations and I would've thought a stake in Saab would be a great way for tech transfer and quality know-how.
Jun 8, 2011 2:17 pm
0 0
johnny232
so the Chinese government is actually not investing in foreign car companies in order to make themselves leading car exporter. I'd really like to see how many people would buy a Chinese car instead of a Merc, Audi, BMW, Mazda, Toyota...(and the list keeps on going)
Jun 8, 2011 12:39 pm
0 0
dcars62
Knowledgeable consumers wouldn't buy one initially but after some refining of their engineering skills and styling, I'm sure the Chinese can build themselves up like the Japanese and Koreans have done.
Jun 8, 2011 1:19 pm
0 0
johnny232
I think it will take at least a few decades (if not a century) before Chinese cars will have a real chance at rivaling current companies. Until they get rid of their reputation of making cheap, unreliable copies I don't think there's a threat of them becoming the biggest in the automotive industry; unless they buy all the big European and American companies and move them to China
Jun 8, 2011 3:08 pm
0 0
A
UMM..have you had a physical look at ANY Chinese made cars of Today???? In Australia we have 3 brands already and a 4th on the way, and they are selling steady but slowly, what is the look and quality like??, well they remind me of the first lot of Korean cars but slightly better in some areas...It will not be long before the Chinese are credible in the auto world...BTW the number of Chinese made electronics and other parts in Japanese and other new cars are many. There is nothing wrong with Chinese parts IF they are made to manufacturers specifications.
Jun 8, 2011 10:46 pm
0 0
9TNine
Oh dear, poor Vikings. Once pillagers of the Anglo-saxons, now struggling to build Saabs with oriental investment. I hope it works out.
Jun 8, 2011 12:17 pm
0 0
Kid_Voltron
Nothing worth writing about, or at least concerning.
Jun 8, 2011 10:45 am
0 0
http://content.worldcarfans.co/templates/0/18