Saab 9-3 production halted due to lack of funds

NEVS in Sweden idles Trollhättan plant for a month due to a cash crunch
 NEVS 
Production of the Saab 9-3 had resumed last year after the purchase of the assembly line and model by NEVS. 

Assembly of Saab 9-3 cars has come to a halt at the National Electric Vehicle Sweden (NEVS) plant in Trollhättan due to a shortage of funds. NEVS, partly owned by a Chinese company, restarted Saab production just last year following the bankruptcy of the automaker, but now it doesn't have enough cash on hand to pay its suppliers. A decision had been made to idle the Trollhättan plant for four weeks beginning on Thursday of this week, said Mikael Ostlund, a spokesman for NEVS.

"The reason is that NEVS' part-owner, Qingbo Investment Co., has not fulfilled its commitment to, when necessary, finance NEVS' activity," the company said in a statement.

"NEVS is therefore making a temporary and controlled halt of production, which hitherto has been six cars per day, and is reducing agency staff."

Quingbo maintains a 22-percent stake in NEVS and currently has 200 electric Saabs on order for the city of Quingdao, where it is based. The electric version of the 9-3 is still in the works, and China is set to be the largest market for the yet-unbuilt model. Gasoline-powered Saab 9-3s with 2.0-liter turbocharged fours making 220 hp, a 20-hp boost over the pre-bankruptcy model, have been trickling out of the Trollhättan factory. Most of the production is going to China as well, but the cars can be purchased in Sweden for the home market via the Internet.

NEVS hopes to develop new models alongside potential partners; the 9-3 that is (or was) currently in production dates back a decade.