Saab Production Grinds to a Halt Once Again
Excuse the pun, but Saab’s recent track record has become quite the sob story. The automaker’s parent company, National Electric Vehicle Sweden (NEVS), has halted production of the 9-3 and cut back its workforce in the wake of financial uncertainty. The company’s cash flow problem reportedly stems from Chinese shareholder Qingbo Investment Co. not fulfilling on its end of the bargain. NEVS’ main owner, National Modern Energy Holdings Ltd., has agreed to keep the money rolling, however no dates have been announced for production to resume. You may remember that it was only a short six months ago when Saab restarted its production lines on the 9-3, though production hasn’t exactly been bristling. It’s been reported that a top yield of six vehicles per day are produced from Saab’s plant in Trollhattan, Sweden. RELATED: Check out these photos of the 1950 Saab 92
It certainly isn’t the first time Saab has found itself mired in dire straits. Under Spyker ownership, the company canned production in April 2011 and eventually filed for bankruptcy by the end of the year. And adding insult to injury, the current 9-3 continues to use a substantial amount of components from previous owner General Motors.
Not all the news is bad however. NEVS has confirmed plans to green-light an extensive investment in the Phoenix vehicle architecture, which the company plans to underpin a lineup of future models. If Saab plans to keep afloat, it will need all the R&D it can get.
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