Why Saab is Halting Production

Saab like all the other major corporations is running into financial trouble that is why they have applied for help from the federal government. Saab has filed for bankruptcy for protection in hopes of restructuring the company. Saab is hoping to become an independent company no longer affiliated with GM. Everything was looking good for the corporation who planned on being on their own as an independent. The creation of their newer hybrids soon to hit the market should bring in plenty enough money to help keep them out of the red and they expect to be running in the green within a year or two.

So what happened that they had to halt their production? It seems that Saab has not paid their custom duties to the Swedish government who has good reason to halt production until they see the green. It seems the "Swedish Tax Authorities" has successfully shut down production. Many of the parts that are used by Saab come from sources outside the European Union. There are suppliers and General Motors suppliers that Saab used and did not pay for the much needed parts. Custom officials have halted the shipment of those parts which has halted the production of the Saab. It seems that the seventy-two year old company owes a considerable amount of money and without the ability to pay they will be shut down. This is a very sticky situation because no one wants to buy the company with all the outstanding debts that they owe. General Motors no longer wishes to keep them as part of their concern either since they are costing the main company too much cash and grief.

Saab will no longer be a part of the bailout package that the government put together for our major auto manufactures so does this mean that the "Big Three" will be getting a larger per cent of bailout funding? Perhaps this is one of their ways of getting more by driving the smaller corporation out of business. Yet it is surmised that Saab being in business as long as they have knew full well the chances that they were taking by not paying customs the tax due and by getting the parts in outsourcing instead of going through the normal channels. Perhaps this lesson will be well taken by other companies and they will follow suit by doing the right thing.