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Saab production is halted again

Swedish carmaker Saab has stopped its assembly lines again, in another sign that its financial troubles are far from over.

News agency Reuters reports that Saab's parent, Swedish Automobile, said on Monday its factory would cease output for another two weeks.

Sky News claimed the carmaker could not give a date for when production would restart.

The Trollhattan factory stood still for most of April and May because it could not pay its suppliers.

It started making cars again late in May after securing financial help from Chinese auto businesses, but was quickly forced to halt again when parts supplies ran out again.

"There will be no normal production during weeks 25 and 26 (June 20th-July 3rd)," Saab spokeswoman Gunilla Gustavs told Reuters.

 In recent weeks, Saab has agreed a rescue package from two Chinese car companies, Zhejiang Youngman Lotus Automobile Co and Pangda which, if approved by authorities in China and Europe, will solve its mid and long-term financing problems.

 

However, short-term financing remains a problem with the company pinning its hopes on a quick sale-and-leaseback of its factory to give it cash to restart production.

 

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