Friday

Saab plant continues shut down; parts shortage; millions owed to suppliers?

Saab's main assembly plant in Sweden remains shut down while parts suppliers line up with hand outstretched, wanting paid for parts deliveries. Saab officials say they have $200 million in the bank, according to The Detroit Bureau, but still are trying to figure out how the deal with the supplier demands.

The shutdown is now in its fourth day as suppliers continue to hold out for payment. Supposedly Saab is trying to get either foreign investors or perhaps GM to loan it more money, but if they really have money in the bank you would think they would just pay the bills and keep building cars while they are trying to get more investors lined up - or maybe this is something far worse?

Whatever the problem, if you've got a Saab, you may soon have an orphan.

And if you are in the market for a new car, think twice before you drive off the lot with a Saab - new or used.

Burdge Law Office
www.BurdgeLaw.com
Because life is too short to drive a lemon.

Wednesday

Saab factory shut down again by suppliers who aren't getting paid for deliveries

and they aren't happy. For the second time in barely a week the Saab headquarters plant in Sweden has had the assembly line shut down by suppliers who refuse to deliver critical parts because they claim they haven't been paid for deliveries. Saab factory officials keep saying that they have money to stay open to at least next year, but the Detroit Bureau is reporting that Saab is "trying to reach a solution" with the unpaid suppliers. The obvious answer would seem to be to just pay the bills, one would think. Apparently what Saab's Chairman calls a "minor glitch" is a little more than just minor after all. Meanwhile Saab is now moving back its "we made a profit" projection another year or so. So, if you've got a bad Saab, now is the time to get it in the shop for repairs before they start stringing out warranty repair payments to their dealers too. And the best motto until Saab gets their financial house in order again? Maybe it's "friends don't let friends buy Saab."
Burdge Law Office


Because life's too short to drive a lemon.

Monday

Saab is in trouble? Unpaid suppliers shut down the assembly line for lack of payment

Unpaid suppliers shut down the assembly line for lack of payment on overdue bills from Saab. The Saab Sweden plan got back to normal after a day long shut down that was sparked when suppliers refused to deliver parts because of outstanding bills that Saab hadn't paid. Saab officials said they were working to "resolve" the bills but the shut down may well be a sign of Saab's continuing financial problems, according to a recent article in the Detroit Bureau. After the GM bankruptcy in 2009 the Saab operation starting shutting down when the Spyker company came along and bought it up. Spyker was then a builder of low-volume supercars. Since starting back up again though, Saab has struggled to get back in the black and rebuild a dealer network that ended up being mostly empty buildings. Then, in February this year Spyker sold the operation to Russian businessman Vladimir Antonov and that was quickly followed by the announcement of a $200 million loss. Then, just weeks ago, the Saab CEO announced plans to retire. Talk about a sinking ship. The Russian businessman, though, says he thinks the company can make a profit as a low volume builder of cars. Problem is, of course, it has to keep those parts coming to stay in business. And that means paying suppliers. And that means selling cars to get the money to pay suppliers. And that means having a network of dealers. And that means having models of cars for them to sell. It's a vicious circle that so far hasn't been successfully mastered. We hate to see any car company go under, anytime. But GM and Chrysler certainly taught the American public that "business is just business" so when you get ready to buy a new car, be careful you don't end up sobbing over your Saab. Meanwhile, if you've got a lemon Saab, maybe you want to get rid of it quick - while there's still a company to try to get your money out of.
Burdge Law Office


Because life's too short to drive a lemon.