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Saab Production Set to Resume This Summer

The Saab assembly plant in Trollhattan, Sweden, will begin producing a diesel-powered version of the brand's 9-3 compact car in August, Bloomberg News reports.

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The Saab assembly plant in Trollhattan, Sweden, will begin producing a diesel-powered version of the brand's 9-3 compact car in August, Bloomberg News reports.

The news service cites a letter to suppliers from National Electric Vehicle Sweden AB, the Chinese consortium that bought Saab's assets last August.

Saab stopped making cars in March 2011 and mothballed the Trollhattan factory when the company entered bankruptcy that December.

NEVS originally planned to relaunch Saab in 2014 with an electric model based on the next-generation 9-3 platform. The cars are to be sold mainly in China. The company said in November it might first build a conventionally powered model whose sales would help to fund the EV program.

The NEVS letter tells suppliers that EV production will begin on schedule next year, according to Bloomberg. The letter also says that annual output in Trollhattan is scheduled to reach 120,000 units by 2016.

Earlier this month NEVS said it would erect a new plant in Qingdao, China, when the Trollhattan factory reaches full operating capacity.

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