Saab’s production lines grind to a halt?

Saab LogoAccording to published reports by Swedish based; The Local, production lines at struggling auto maker Saab’s Trollhattan plant has ceased. Apparently this is because the Swedish Customs has temporarily blocked the transportation of all goods to, and from the factory after revealing that Saab has failed to pay considerable amounts of custom duties.

Due to the discontinuation of the parts supply into the factory, Saab had no choice but to grind everything to a halt. This sudden and unforeseen event occurred after the General Motors-owned brand filled for reorganization in Swedish courts a couple of days ago on March 21st.

Customs officials revealed that Saab has to pay the amount (which was undisclosed) it owes the agency in order to resume its factory operations and the agency confirmed that the auto maker has to pay every single cent of it, and that the customs has no interest in giving the struggling auto maker a helping hand.

In another development, Saab is seeking an approximate amount of US$ 1 billion to enable the restructuring to take place and thus far it has yet to receive any indication regarding the crucially needed funds. By filling for restructuring, Saab will be reshuffled into a whole new organization that would be viable for investment. The courts in Sweden will appoint an executive who will head the company during the period.

Related Posts:
Saab might go bankrupt in 10 days

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Harvinder Sidhu

Harvinder Singh Sidhu thinks there's nothing better than Formula 1, not even sliced bread. Having written about cars since 2006, he plunged head first into the industry out of a passion for all things four-wheeled and everything in between. The F1 enthusiast has been following the sport since 1999 and has been keeping up with it since. In between races he keeps himself busy as the host of the Driven motoring show and as our version of the Joker.

 

Comments

  • tiadaid on Feb 26, 2009 at 5:28 pm

    That's the beginning of the end for SAAB…

    Like or Dislike: Thumb up 0 Thumb down 0
  • knight_templar on Feb 26, 2009 at 5:38 pm

    whoa tis is kinda Darwinian, in the crowded car world only the strong will survive natural selection. Oh not forgetting the 'protected' too ;)

    Like or Dislike: Thumb up 0 Thumb down 0
  • tikus on Feb 27, 2009 at 1:20 am

    Protong fast to the rescue , just 1 euro only mah.

    Like or Dislike: Thumb up 0 Thumb down 0
  • mystvearn (Member) on Feb 27, 2009 at 2:43 am

    haha. 1 euro for this brand. But then cost to build in europe is expansive. Do like china, ship everything from the rover factory in England back to china and rename Rowwe.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required