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.