SAAB Automobile Company Has to Suspend Production Due to the Shortage of Component
The Trollhättan factory of Swedish SAAB Company was forced to suspend its manufacturing China activity on Tuesday, local time June 7, 2011 due to the shortage of component supply. This company has claimed that the expected manufacturing China activity might be recovered on Wednesday, June 8, 2011.
However, it was reported that this company had not recovered its production in the morning of Wednesday. It is said that not all suppliers had received the delayed shipment fee of SAAB. Currently, there are some suppliers such as diesel turbocharger and engine suppliers unable to re-operate their manufacturing China process.
According to the report of Routers that the spokesman of the SAAB Company, Gunilla Gustavs noted that the insufficient component supply had greatly affected the timely manufacturing China of the company.
In the mean time, SAAB announced on Wednesday that the suspension of the Trollhättan factory has carried to another day and this company has lowered its production goal for this week.
The SAAB Company declared on Sunday, June 12 that the Trollhättan factory of the company would continue to suspend its production in the following week. The company is currently negotiating with the component supplier so as to make sure that the Sweden factory can secure stable automobile component supply.
Gunilla Gustavs said in recent days that the Trollhättan factory will further suspend its manufacturing China activity in the following week. He pointed out that the priority of this company was to ensure stable component supply. For the time being, this company cannot ascertain when the manufacturing China process might be re-operated.
Prior to this, the component suppliers of SAAB Company cut down their supply due to the arrears and thus forcing the company to suspect its manufacturing China process for several weeks.
SAAB Company commented in recent days that after having suspended the production for nearly eight weeks owning to the arrears to its automobile component suppliers, this company expected that the sales of SAAB cars dropped to historical low in terms of sales performance of this company in May. It can be implicated from the relevant data that the automobile sales of this company in May had decreased by 59 percent, dropping to 290, in its main market Sweden.
SAAB Company has been severely affected by this situation. On the one hand, the arrears had impacted the relation between the company and its suppliers and on the other hand, the stagnant selling performance had brought along negative elements for the long-term development of this company.
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