Production *Should* Start Next Wednesday

This according to Gunnar Brunius, Saab’s purchasing manager and production director. According to DI, the money for the first Saabs was wired from Pang Da. This effectively quashes claims from skeptics who thought the deal too good to be true (read: TTAC). From DI:

“I expect the plant to begin production on Wednesday of next week since they’ve come to the Saab on Tuesday this week,” said Gunnar Brunius, Purchasing and Production Manager at Saab Automobile to DI.

On Tuesday, he initiates the process of agreeing with Saab’s 800 suppliers so that they start to deliver the components again after a six-week shutdowns.

The major suppliers, including IAC, Sweden, Plastal and car seat manufacturer Lear, are invited to personal meetings, while many other contacts are handled through e-mail.

“Many of them will certainly take up demands for immediate cash payment, or nearly so,” said Svenåke Berglie, president of Automotive Component Group [FKG].

The plan is that Saab will begin production at a level of 230-240 cars per day.

This may be optimistic, but for Gunnar Brunius to give a mid-next week target date, they must be reasonably confident that they can make it.

35 thoughts on “Production *Should* Start Next Wednesday”

  1. Is Gunnar Brunius really the purchasing manager? Sure he is the production director, but I firmly believe Kjell-Åke Eriksson is the purchasing manager (inköpschef) at Saab. I think DI got it wrong. Or did I get it wrong?

    • No, DI got it right…apparently Gunnar is doing both now, even though Kjell-Åke is listed as being Executive Director of Purchasing and General Manager of Sweden for Saab on his profile. Apparently they realized both organizations weren’t well synced, and changed it up.

      • I don’t know either gentleman personally nor can I in any way comment on their track record, but I really do hope this signals some withering down of Saab’s management ranks. Saab has inherited a GM-link byzantine structure of layers and layers of managers responsible for everything and nothing, with overlapping comeptences and unclear responsibility. So far we’ve had vehicle line executives, project managers, country managers, regional managers, subsidiary CEOs and minimal sales.

    • I think, even if Mr Brunnius is not the Purchasing manager, at this point he is the one responsible for the restart of the production, and this is, imho, the only reason why he is talking to the suppliers.
      He may have to produce the cars he can get parts for, till the whole supplier chain works once again at normal peace, and having an extra communication layer between production and suppliers is not the best thing now.

  2. Pang Da says it will take 2(!) weeks to wire the money…

    Pang Da said the first EUR30 million will come within two weeks, and could wire EUR 15 million Saab cars can buy within 30 days, said Wang.

    According to the statement Monday Pang Da need the authorization of the Department of Commerce, the supervisor of China’s foreign currency trading and the National Development and Reform Commission.

    “We started these supervisors to consult on the approval procedures, ” he said. “For the first time we made ​​such an investment and we do not really know how it works.”

    Source: Dow Jones Newswires
    Via: http://www.rtl.nl/components/financien/rtlz/nieuws/2011/20/pang-da_geen-goedkeuring-overheid-nodig-om-saabampapos_s-te-kopen-dowjones882404.xml

    • Within doesn’t mean it will take two weeks. It will take a maximum of two weeks, so it also could happen today or tomorrow.

        • That can be. But that is something Muller said yesterday (so it is in the past).
          Today the Chinese say it may take up to 2 weeks.

          You don’t say something like that when you wired the money a day earlier…

          • Boe,
            your source is a little bit confusing, imo.

            First sentence is:

            Pang Da doesn’t need the authorization of the Chinese government to buy
            Saab cars.

            Further below, and using your own translation

            According to the statement Monday Pang Da need the authorization of the Department of Commerce, the supervisor of China’s foreign currency trading and the National Development and Reform Commission.

            ????

  3. In VM’s speech to the empolees on Inside Saab he says:

    – The required negotiations with suppliers, as well as supplier ramp-up time mean that it could take several weeks for production to recommence.

    Confsuing…everyone tells sth. else. Same procedure as before…

  4. @Red J: Pang Da does not need authorization to buy cars from Saab, but they do need authorization for the others plans they have:
    – 24% shareholding
    – The 2 Joint Ventures

    The Google Translation is not so good I’m afraid 😉
    Pang Da also claims they have not send any money yet to Saad and the will do so in the following two weeks.

    • No it is not a lot, but at the same levels Saab were before the production stoppage. I believe that at maximum capacity Saab can produce around 900 cars/day in Trollhättan.

    • I think the maximum is 38 cars per hour. 240 cars per day can be done at 30 cars per hour in 8 hours or 24 per hour in 10 hours.

  5. How long was the production stop in 2009/2010? Three months? And it took Saab almost 6 months to be up to speed again. And they should be able to do it in 2 weeks?

    • different situation. in 2009/2010 gm had already started the closure of saab, so all contracts were cancelled and most of the machines for the production of the 9-5 were in rüsselsheim.

  6. Saab alreade “producing” cars?

    I just read an article from Swedish AMS about 9-4X.

    http://www.automotorsport.se/news/22722/saab-9-4x–bäst-någonsin/

    In the second paragraph counted from the end the article says in Swedish “Glädjande nog har den (9-4X) redan gått i produktion, i måndags faktiskt. Fast inte i Trollhättan utan i Mexico”. In English that is “Happily, the (9-4X) has already gone into production, last Monday actually. Althogh not in Trollhättan but in Mexico.”

    Why is this important? Because it enables som sale and will start filling up Saabs depleted cash coffin. According to my knowledge Saab has a fairly good margin on the 9-4X after expenses to GM manufacturing it. Further, this enables the release of some positive information to counter all the naysayers in Swedish Press.

    Would anyone with connections to particular news papers please be so kind to tip them off?

    • You are absolutely correct. Let’s just hope that the 9-4X is so good that it will sell well despite the uncertainty at the moment. 🙂

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