Swedish Radio have a story saying that an announcement was made earlier to Saab employees stating that production will stay at current levels for some time in order to preserve the funds that they have to complete thier reconstruction process.
Saab had hoped to double production in the near future to match increased orders they’ve been receiving. GM’s funding, however, is not enough to sustain an increase, where they would have increased costs up front with a dealy before recouping revenue.
A translation of the SR article:
No rate increase for Saab
There will be no rate increase for Saab in Trollhättan, after vacations. That information was given to all employees at a meeting in the afternoon.
The increase in production was projected for week 33. But now this won’t happen, Saab management told the employees in the afternoon.
The reason being that the company does not have enough money to meet the increased cost that comes with increased production rate before the money comes in for the new cars .. The plan was to double the current production rate.
IF Metall’s local union chair man at Saab Automobile, Paul Åkerlund, tells Swedish Radio West that there was an obvious risk that this would happen, but the economic situation does not allow any increased production until perhaps in the autumn.
– In order not to jeopardize the future, we will have to wait a while to make the [production] rate increase, “said Åkerlund.
Saab had been working at a rate of around 100 cars per day. They have plenty of scope to increase this rate and re-hire some laid off workers, but they don’t have the funds.
Saab chief Jan-Ake Jonsson spoke of the need for increased funding earlier this week, however his overtures were rebuffed by the Swedish government, who weren’t interested in supporting bridging finance for Saab.
An article at TTELA indicates that Saab, instead of increasing production in week 33, may actually halt production that week, before resuming their slow 100-a-week pace.
…. there is no danger in the reorganization process itself, but we must remain at the low rate of 100 cars a day that we are at now, “says IF Metall klubbordförande, Paul Åkerlund.
Furthermore, Saab will completely stop the production weeks 33 immediately after the holidays.
Thanks to several for the tip and to JV for the trans!
Also thanks to None for the TTELA tip