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Thursday, June 9, 2011

Saab halts output again, talks with suppliers, (SPYKR)

Struggling carmaker Saab has halted output again while it talks with suppliers and negotiates more funds, days after ending a long stoppage, Dutch owner Spyker (SPYKR.AS) said on Thursday. Saab shut down for most of April and May and only got output going again on May 27 after reaching a deal with Chinese auto dealer Pangda (601258.SS) to purchase 30 million euros worth of cars. Pangda later signed up for 15 million euros more of vehicles. Spyker chief executive Victor Muller expressed confidence agreement would be reached soon with remaining suppliers to ensure a stable flow of components, but the new stoppage has again brought back uncertainty for the iconomic Saab brand. "Thus far we have reached agreements with the vast majority of our suppliers and we are confident that we will reach agreement with all remaining suppliers in the coming days, thereby stabilizing our operations and our production in particular," he said in a statement.

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