Saab today said it has temporarily stopped production because of problems in its supply chain. The struggling Swedish automaker said it will resume building cars as soon as possible.
Saab is suffering parts shortages after its Trollhatten, Sweden, factory, was shut for most of April and May when key suppliers stopped deliveries over unpaid bills.
Saab Chairman Victor Muller said in a statement on Thursday: ''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 re-stocking inevitably takes time.''
Muller added: "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.''
Muller told ANP-Reuters that some suppliers were demanding upfront payments instead of accepting credit lines. He added that he expected production would be down days rather than weeks and the deal with Chinese auto dealer Pang Da was not at risk of falling through.
Saab restarted production on May 27 after Pang Da provided a cash injection by agreeing to buy 30 million euros worth of Saab cars. Production stopped again on Tuesday and Wednesday because of parts shortages.
In a statement Thursday, Saab said: "To avoid disruptions as a result of irregular inflows of certain components and parts, Saab Automobile has decided to temporary suspend production.