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Saab production hits new snag

Troubled Swedish automaker Saab has stopped the lines due to a lack of parts only two weeks after resuming production after seven weeks idle.

"The production line stopped yesterday. We were building cars early in the morning but for the greater part of the day it has been disrupted and will remain stopped today," Saab Automobile spokeswoman Gunilla Gustav told AFP.

She said the factory had reduced production targets and would have to decide on a day-to-day basis "when and at what pace to run the line".

A local branch of Swedish public radio in western Sweden, where Saab's Trollhattan plant is located, reported that workers had been told there would be no production for the rest of the week.

Saab re-started production on May 27, 2011 after a hiatus of more than seven weeks because suppliers halted deliveries until invoices were honoured.

SPYKER FOCUSED ON SAAB


The tiny, iconic Swedish brand and its 3800 employees were rescued at the last minute early in 2010 when equally tiny Dutch company Spyker bought it for $400-million from US auto giant General Motors. Spyker originally made luxury sports cars but said in February it was selling that division to concentrate on Saab and on Tuesday announced the company's name would be changed to Swedish Automobile.

After initial optimistic statements and production forecasts, Spyker and Saab have recently been scrambling to pull together enough cash to keep production going.
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