Saab production halted once again

Short-term cash problems cause Saab to halt 9-3 production and cut its workforce, although two new partnerships could provide a boost

Saab 9-3 front

The Saab saga has taken yet another interesting turn with parent company National Electric Vehicle Sweden (NEVS) forced to halt production and cut its workforce.

The “short term cash problem” is apparently a result of Chinese shareholder Qingbo Investment Co. not fulfilling its “contractual obligation to finance the operations.”

Although NEVS’ main owner, National Modern Energy Holdings Ltd., intends to pick up the financial slack as the company’s sole backer, a lack of readily available funds has caused Saab 9-3 production to temporarily cease.

The announcement comes just under six months since new models began rolling off assembly lines at Saab’s Trollhattan plant in Sweden, and there’s currently no word on when work will resume. It’s similarly unclear whether the brand’s existing output of six cars per day will be improved upon.

It’s not the first time there have been doubts about the Swedish manufacturer’s future, having also halted production three years ago in April 2011, before filing for bankruptcy in December of the same year.

In a bid to boost its stock in the wake of this latest setback, NEVS has announced plans for an “extensive investment” in the Phoenix architecture “which will be the base for future car models.”

The new platform’s development will apparently take place “in cooperation with other global OEMs” – with one signed up to co-develop the frame and another in negotiations for part ownership.

NEVS is hopeful these new partnerships will provide the “financial and technical support” necessary to relaunch Saab as a premium brand around the world. 

Most Popular

New 2021 BMW M3 launched with huge grille and 503bhp
BMW 3 Series M3 Coupe

New 2021 BMW M3 launched with huge grille and 503bhp

The new sixth-generation BMW M3 Competition saloon gets a 503bhp straight-six engine and four-wheel-drive
22 Sep 2020
Energy firms want the right to switch off electric cars charging at home
Electric cars

Energy firms want the right to switch off electric cars charging at home

New powers being sought to allow energy providers to turn off high-drain devices to manage electricity network
18 Sep 2020
New Honda Civic Type R 2020 review
Honda Civic Type R

New Honda Civic Type R 2020 review

We find out if the revised Honda Civic Type R can stay at the top of the hot hatch class
22 Sep 2020