NeW

Car maker Saab faces new production hiccup

AP News
|
Posted: Jun 09, 2011 6:52 AM
Car maker Saab faces new production hiccup

Struggling car maker Saab Automobile AB says it has once again shut down production at its plant in western Sweden due to a lack of components and negotiations with suppliers.

Saab, which resumed production on May 27 after near seven-week standstill, said the stop Thursday was part of an anticipated start-up phase production hiccup. It said the previous closure also influenced many of its suppliers and re-stocking components and that negotiations with the suppliers are taking some time.

Chinese group Pang Da in May agreed to buy a 24 percent stake in Saab-owner Spyker for euro65 million ($95 million). It has also made upfront payments of euro45 million for around 2,000 Saab cars.

Saab on Thursday said it is working on securing further short and medium-term funding.