Saab in disparate search for funding – the roles of funding in production success

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Thursday, 07 April 2011
Saab's management is desperate looking for capital to prop up the company’s flagging financial need. At the same time more suppliers are shortening their contracts due to lack of credit - and enough money for delivery. On Wednesday, the factory stopped operations again "until further notice".

The Purchasing Department of the company is keeping the dialogue going with suppliers, and company management are working hard to strengthen their financial position, according to the communication department of the company.

On Wednesday, the company’s management was forced to stop several large marketing projects so as to save money. After several intermittent stops in the last week, the in the  production line in Trollh�ttan factory, the production has now come to a complete stand  still "suspended" and the employees now have to rest for the week.

The reason for this pause is that important supplies of material are absent from the subcontractors. There is talk of cars builder lacking coolers and instrument panels.
Saab's press office would neither confirm nor deny the information coming from the suppliers hold and no one knows nor with certainty when the production can get going again.

The constant disruption in supplies of materials is related to the company's limited liquidity.
The halt in production may also have direct implications for other companies. Lear Corporation in Trollh�ttan, a manufacturer of car seats for Saab, among others, had to close its production on Wednesday.

Several other subcontractors according to various press reports also show signs that their own patience is increasingly running out.
Some authorities feel that Saab’s communications strategy has gone very wrong this time. That it has made subcontractors to make pretty tough conditions right now in this uncertain situation.

The hope of Saab’s management for getting quick cash via the Russian financier Vladimir Antonov is also delayed due to the Swedish Debt Office not dealing with the issue as an emergency. Authorities in the Swedish Debt Office say that its will “it will take weeks rather than days".
By Team

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