Communique: Production suspension to continue during next week

An internal communique from Saab updating the situation with regards to recent disruptions at the plant since resumption of production.

——-

The halt in production in April and May did not just affect Saab, but also our suppliers. We expected the risk of disruptions while restarting production, and have indeed experienced such disruptions this week. Therefore, the company decided yesterday to temporarily suspend production until we can secure a more stable flow of material.

Yesterday, Management reviewed the forecasted conditions for next week. This is part of the routine enabling us to inform suppliers about the production plan. The review revealed that suspended production will be necessary during next week as well.

The dialogue with our suppliers continues with high priority. Meanwhile, representatives from Saab and Spyker are working on a variety of initiatives to further strengthen our financial position in the short and long term and to stabilize operations. We expect to be able to make an announcement soon.

The Production staff will be at home today, Friday. Thereafter, Production management will make continual operating decisions about required attendance at work. The staff will be kept informed by their supervisors.

——

End of the internal communique. Time for a little bit of context……

We have two primary ways of getting cashflow into our business.

The first is via commercial financial arrangements, which we continue to work hard at in order to secure our financial base for the future.

The second is to produce, sell and invoice cars, which is what we are working to secure with our suppliers. We now have an order bank of some 10,000 vehicles between our plant in Trollhattan and our 9-4x manufacturing arrangements with GM at Ramos Arizpe. This order bank represents a substantial and prolonged cash inflow.

As was mentioned when production resumed, we expected that there would be disruptions along the way. There are hundreds of suppliers involved with the production side of our business, and hundreds more involved in other aspects of the business. Our recent prolonged stoppage affected them in numerous ways, and this has had consequences for the re-start of production here at Saab.

As we’ve mentioned in prior communications, we are working hard on both sides of this cashflow issue and will continue to do so until the situation is resolved.

You may also like

13 Comments

    1. It wouldn’t because those vehicles are being built by GM and GM has no issues with building for Saab. They were building the 9-4X for Saab when the production in Sweden was down before and never stopped.

      1. That´s fine.
        Today the dealer “Svenska Bil” in Akalla (Stockholm), had the 9-5SC on display. Looks so good in every color.
        This one was solid black with rails in brushed aluminium and that together with the side windows aluminium hockeystick was just super duper! 🙂

  1. I`m a bit confused.
    Is the production halt due to supplyers not beeing able to deliver parts quickly enough or because the are not getting paid?
    I see both messages in this report.
    I understand the financial situation still is far from stable, but what is the main reason?

  2. So, apparently about 10.000 customers are waiting for their car (ours should have been produced about 6 weeks ago) and we hear NOTHING from Mr Muller of an excuse to the customers. Nice way to treat the people that did buy a Saab and are still waiting. 

    1. Not sure any excuse is required?  I believe the story explains itself…  We have customers waiting for cars, the production has intermittently stopped and will be underway again asap.  In fact this posting by Swade of an INTERNAL communique seems to me to be exactly what you are asking for… an explanation of why your car is not here yet.  
      Don’t get me wrong.  I have several customers waiting for cars that they have ordered or wish to order, but I think things have been explained as clearly as possible at this time.  The line has stopped (temporary and foreseen) and will go again when the current material supply has been stabilized. I sympathize. The cars can’t get here fast enough!

    2. Robert, as mentioned by SaabR in a previous comment, our ongoing communications are an effort to keep both customers and other stakeholders informed to the best degree that we can.  This situation is changing from day to day, sometimes from hour to hour.  We’d prefer you to hear what’s going on from us rather than what can be some speculative third parties.  

      As for the boss, he’s not writing here in detail because he’s out there getting things done, which is what he needs to be doing.  We really do appreciate your support and we’re working very hard to get your car and others out the door (as mentioned in the communique, one of the main ways we can get our cashflow stabilised is completing cars and thereby shipping them so that we can get paid for them – we want to get your car to you as much as you want to receive it).

  3. I saw an interesting comment on a news site regarding the recent production start-up and then stop.  Here’s the quote: “Sometimes the patient twitches even after he has died.”  I have a very sick feeling in the pit of my stomach. 🙁 And yes, 10,000 orders does represent major cash flow. However, you have to build the cars first.

    1. I don’t suppose if I said “take two aspirin, call me in the morning and keep away from news sites” that it would help?  There’s plenty of work to be done, but personally speaking, I remain as convinced as ever that Saab have got too good an immediate future in terms of vehicle lines for this to not work out.  I wouldn’t be living 30+ hours away from my home and my family if I thought otherwise.

      1. I personally believe that SAAB has a bright future …. I also believe that the NG 9-3 designed by Jason is the car that will make it for us …. we have to get there, another 12 difficult months ahead … let’s hope to have soon some positive development of the Antonov saga …

        but Swade believes in it and put himself on the line (not only talk but facts) and to me that is very important

      2. Ahhh, Dr. Swade.  Two aspirin?   More like two shots of my favorite beverage.  Anyway, thanks for responding to my post.  You’ll have to forgive the few doubters here on the site.  We try to bring a little balance to the force.  I think it’s always good to get a perspective from both sides of the issue. Much of my angst surrounds the fact that I just purchased a new 9-5 Aero in April. I’m very concerned about my warranty, parts and free service. I’m also a little upset that my dealer made absolutely no mention of the production stoppage. Here in the US the major news sites have for the most part ignored the story until a couple of weeks ago. I would not have purchased the car if I’d known how dire Saabs condition is.

Leave a Reply

Your email address will not be published. Required fields are marked *