February 25, 2009

Swedish customs halts Saab production, citing unpaid taxes

Reuters is reporting that the Swedish customs authority has effectively shut down Saab's Trollhättan factory, citing a "considerable" sum of import duties that have been left unpaid.

Saab imports the majority of its components from third-party suppliers and GM-owned factories outside the European Union. With that supply chain broken by Swedish authorities, Saab ran out of parts and has been forced to shut down production.

Saab spokesman Eric Geers said that the problem began with an overseas supplier and that the problem had been resolved, without giving specifics.

A Swedish customs official said that after filing for protection from creditors last week, Saab lost its 30-day line of credit with Swedish customs, leaving the unpaid duties on a warehouse full of inventory and spare parts due in full.

No matter where the fiscal trouble started, today's news is another sign of cashflow woes within the ailing Swedish automaker.


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