automotive

Saab Production Is Back In Gear

SaabProduction

Saab Automobile has been on a product offensive for four all-new products since 2010, including the Saab 9-5 Sedan; Saab's first crossover, the 9-4X; the 9-5 SportCombi, and the 9-3 Griffin range.

But new vehicles are hard to launch when production lines are silent, which had been the case since early April. The shutdown was consequent to a money-flow problem that led suppliers to stop supplying. After deals with Chinese automaker Hawtai failed, and buzz grew regarding Saab's ability to save itself, another Chinese company came to the rescue, apparently at the last minute. Now production is back.

Pang Da, a chain of Chinese dealerships, agreed to fund Saab, and that was enough for the automaker's suppliers. "Based on our discussions with Pang Da, we are confident that Pang Da will get the regulatory approvals needed to formalize the deal," said Victor Muller, CEO of Spyker and Saab Automobile, earlier this month. "I am very much looking forward to creating a strong business with Pang Da, initially in the distribution, and subsequently in the manufacturing of Saab vehicles in China."

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Saab says it has ramped up operations at its production facility in Trollhattan, Sweden, starting with an initial batch of 100 cars. The company says it plans to increase daily production in the coming weeks in parallel with the full re-establishment of the supply chain.

Saab says the total number of outstanding orders from markets worldwide for the Trollhattan factory amounted to over 6,500 cars -- which when added to the outstanding backlog of orders for around 1,600 Saab 9-4X orders amounts to over 8,100 vehicles. The number includes around 1,300 cars that were ordered by Pang Da Automobile and for which it paid €30 million up front.

Said Muller on Tuesday: "We will work hard in the coming period to regain confidence and show our ability to become a successful carmaker. We are fortunate that we are in the middle of the largest-ever product offensive in the company's history."

Saab launched the new 9-5 sedan last year and the 9-3 Griffin earlier this year. Muller, in a statement, said the company's first crossover -- the 9-4X -- was sold out for model year 2011. "After the summer, we start delivering the much-awaited Saab 9-5 SportCombi to customers."

Last month, the company's U.S. operations based in Royal Oak, Mich. appointed Subaru executive Timothy Colbeck as the new president and chief operating officer, reporting to Saab Automobile AB vice president and head of global sales, Matthias Seidl and the Saab Cars North America board.

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