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Issues with Saab production

Discussions with suppliers lead to a halt in Saab production this week, though the situation appears resolved now.

Production of Saab cars was temporarily halted this week (March 29) after some suppliers ceased deliveries to the company following concerns about payment. These issues have been resolved, says Saab, and production resumed today (March 30).

Saab has been in discussions with several of its parts suppliers about payment and supply conditions. The Swedish firm, owned by Spyker Cars NV, says it has resolved these problems and there will be no further disruptions to supply or production.

Saab pointed out it has sufficient means to remain financially stable in the immediate future. The company is also working on longer term solutions and future capital strength.

This latest problem for Saab follows the news that its senior executive Jan Ake Jonsson is set to retire on 19 May. This has caused some concern among Saab's parts and logistics suppliers as the car company continues to make a financial loss.

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Published on April 1, 2011