Saab Car Production Stops, Again

The relaunched Saab car company has run short of funds and suspended production of a variant of the Swedish brand's 9-3 sedan, Reuters reports.

The company's new Chinese owner, National Electric Vehicle Sweden AB, began Saab production in Trollhattan, Sweden, last December at a rate of six cars per day.

The company aims to eventually make a battery-powered next-generation 9-3 sedan. But initial output has been the same piston-powered 9-3 model Saab stopped making three years ago.

NEVS plans to suspend production on Thursday for four weeks because it lacks the funds to pay its current debt. The company complains that Qingbo Investment Co., its 22% owner, "has not fulfilled its commitment to, when necessary, finance NEVS' activity."

The investment company is a unit of the city of Qingdao, which has ordered 200 electrified Saabs for its government fleet. The city says it will honor the contract, Reuters reports. It isn't clear when NEVS will begin producing a Saab EV.

The company indicated last year it would add a conventionally powered 9-3 wagon in 2014, using sales to help fund the debut of a 9-3 EV by year end. Now NEVS says it is negotiating with another carmaker to partner in developing its future EVs. The company also says it is discussing a possible equity sale to a second unnamed vehicle producer.