Saab's Suppliers Skeptical of Company's Finances

Things haven't been going for Saab ever since – well, for a long time, actually, but while the fabled Swedish automaker was part of General Motors, its problems went unnoticed.

Now that GM has ejected Saab from the nest, it's having a little trouble taking flight on its own. Saab was acquired from GM by Spyker Cars NV, a tiny high-end sports car manufacturer that has found it a difficult transition.

Last week production was halted when suppliers cut off shipments because they were concerned about Saab/Spyker's finances. Yesterday, Saab said production had resumed after it reassured its suppliers. But apparently those reassurances didn't last long, because today production stopped again.

Reuters quoted a spokesman for a supplier's organization as saying Saab "cannot pay their bills." He called it "very, very unfortunate."

Last week, Spyker CEO Victor Muller said Saab would survive what he called a "small glitch" and said that by next year, it would have the widest and newest model range in its history.

Muller today conceded that more interruptions are likely in the future and said he was confident the company would "get it under control," Automotive News reported.

Jonsson departs

Muller took over as interim Saab CEO last week, as Jan Åke Jonsson announced his resignation after nearly 40 years with the company.

“We have already accomplished so many things that many thought were impossible and I am convinced that Saab Automobile is on the right track towards replacing the entire product portfolio by October 2012 - when the next generation 9-3 will be launched - as well as creating a stand-alone company with a financially sound business model," Åke Jonsson said.