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‘Patience running out for Saab abroad’: suppliers

Disgruntled foreign suppliers could prove the stumbling block for disaster-riddled cash strapped Swedish automaker Saab, according to a European association for suppliers.

'Patience running out for Saab abroad': suppliers

“I think that the patience has more or less run out,” said Lars Holmqvist CEO of Clepa, the European Association of Automotive Suppliers, to news agency TT.

Ten weeks have passed since the factory in Trollhättan closed and with the exception of occasional days, production lines have been at a standstill ever since.

The problems with suppliers who haven’t been paid remains and according to Lars Holmqvist it is probably going to be the suppliers based abroad who will be the first to give up on Saab.

“They probably have less feeling for Saab than many Swedish companies which have grown up with Saab in a different way. Many also have a personal connection to Saab because they might have driven one at some point in their life. But the foreign suppliers are tougher,” Holmqvist told TT.

And according to him, their patience is running out.

“This is partly due to a lot of empty promises that have turned to nothing and partly due to lack of information. No consideration has been taken of these suppliers, they feel duped and therefore Saab is now standing there with a factory at a standstill,” Holmqvist said.

Holmqvist doesn’t want to speculate into how long Saab can hold out.

“But I am surprised that they have managed this far. I don’t think Saab will make it,” he told TT.

The Saab board is currently working to find a solution but on Wednesday they were no closer in being able to say when production can begin again.

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CARS

Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
 
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
 
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
 
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
 
All three suspects deny all the charges against them.
 

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
 
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
 
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
  
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
 
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
 
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
 
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.