Saab production still halted due to supplier issues
Saab’s Trollhattan production facility has been shut down for most of April and May due to non-payment issues with a long list of vendors; some of which were revealed last week in a filing with a Swedish collection agency amounting to over $3.6 million (23,743,014 Swedish Krona). Many of these suppliers began refusing delivery of components vital to the vehicle production at the Trollhattan facility and when it began, Saab and Spyker claimed that it was basically an accounting glitch. However, as time went on and Saab scrambled to find anyone to hand them cash in exchange for a part of the company, it was clear that this was an issue of financial stability.
This latest Saab production stoppage will run from June 20th-July 3rd as the company attempts to work with their suppliers who have not been paid in some time. Saab claims that they are trying to come to terms with their suppliers while those who are owed money by Saab explain that its not an issue of negotiation but rather a need for Saab to simply pay their bills. Saab plans for their new partnerships with Chinese firms Pang Da and Zhejiang Youngman to cure their cash flow problems but with those deals still in question and pending approval from the Chinese government that some feel will never happen; it is unclear whether or not Saab and Swedish Automobile will have the massive amount of money owed to their many scorned suppliers.
Saab currently appears to be working on a “plan b” in case the partnerships with Youngman and Pang Da don’t work out, as Swedish business publication Dagens Industri reports that Swedish property company Hemfosa may be interested in purchasing and then leasing back the Trollhattan facility. This will reportedly bring in 300 million Swedish Krona ($46 million US Dollars) and while the full extent of their debt is not known, the cash infusion from the sale of the Trollhattan plant would easily cover the debt owed to those 48 companies who have filed with Swedish collection agency Kronofogden. Click here to read more about the collection filing made against Saab and Swedish Automobiles.
Saab had originally hoped to sell the plant to young Russian investor Vladimir Antonov but with concerns about Antonov’s previous business dealings, things have been incredibly slow in selling the Trollhattan plant to him. Instead, it looks as though Saab will try to sell the plant to a real estate firm, leaving Antonov to find a different way to get ahold of a chunk of Saab…if he still wants to be a part of the troubled automaker.
Other Saab News:
Saab creditors seek over $3.6 million with collection agency
Saab joins forces with a second Chinese group
Saab production stops again
Spyker to become Swedish Automobile N.V.
Saab finds a new Chinese investor in Pang Da
Saab/Spyker partnership with Hawtai Motors terminated