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cash flow problems

Saab halts production for the rest of the week

Published tisdag 12 april 2011 kl 10.42

It will be a week before production can start again at the Saab factory in Trollhättan, the owner Spyker Cars announced in a press statement on Tuesday morning.

This will be the case, even if the National Debt Office would give a go-ahead for Saab to sell real estate property as a way to increase the cash flow in the company.

Sven-Åke Berglie of the suppliers' organisation FKG, tells the daily Dagens Nyheter that Saab currently owes the suppliers over 100 million kroner (nearly 16 million US dollars). The production line at the Trollhättan factory has not been running since last Wednesday, as some suppliers have refused to deliver until Saab pays them.

Saab is currently negotiating with the National Debt Office, as land and properties are used as security for the Debt Office's guarantee of a loan to Saab from the European Investment Bank (EIB).

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