Production stopped at Saab for a further fortnight as it attempts to thrash out deals with suppliers
21 June 2011

Saab will not begin making cars again until July 4 at the earliest as it attempts to thrash out a deal with suppliers over its unpaid debts.

Saab is now proposing it pays suppliers 10 per cent of debts owed up front and will pay the rest in full by the end of September. The chairman of the Swedish parts supplier organisation, FKG’s Christer Palm, said he believed suppliers would accept the deal.

Read more on Saab's production problems

The Swedish Automobile (formally Spyker)-owned firm earlier announced no production would take place at its Trollhattan factory between June 20 and July 3 and it expects to see production return to normal levels from July 4 onwards.

Talks are also understood to have been held between Saab and a Swedish property firm that would see Saab sell Trollhattan and lease it back in an attempt to free up day-to-day cash flow.

Deals are also in place between Saab and Chinese firms Pang Da and Youngman Lotus Automobile Co designed to free up cash and give the company a foothold in China.

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