Zeewolde, The Netherlands – Saab production has temporarily halted again due to the flow of supplies, the company has announced. Saab had previously halted production for seven weeks in April and May when its suppliers stopped shipments due to payment issues.
In a statement, Saab said that while it has “booked lots of progress and reached agreements with the vast majority of its supplier base, negotiations with a number of suppliers on payment and delivery terms are still ongoing. These negotiations are expected to be finalized shortly.”
Saab said it is working on a number of initiatives to secure further short- and medium-term funding. The company recently partnered with Chinese company Pang Da, which advanced the Swedish automaker a total of €45 million for orders of 1,930 vehicles. Saab said that it anticipated “production hiccups” with its initial return to production.
“We anticipated that we would not see a smooth inflow of supplies as from the day we restarted production, May 27th, and communicated that in our press release of the day,” said Victor Muller, chairman and CEO of Saab Automobile. “We have a few thousand suppliers worldwide with each of whom we have to reach acceptable terms and conditions to resume production of parts and subsequent deliveries. Many suppliers are located outside Europe and restocking inevitably takes time. Thus far we have reached agreements with the vast majority of our suppliers and we are confident that we will reach agreement with all remaining suppliers in the coming days, thereby stabilizing our operations and our production in particular. However, it is not to be excluded that we will see production hiccups in the near future until the supply chain is fully back to normal.”