Saab forced to halt production

Earlier this week Saab announced its independence from General Motors with optimism, but today the carmaker has been forced by Sweden's Customs Office to cease production and delivery of cars because it hasn't paid the required fees.

The Trollhattan plant has stopped production temporarily, though the acute shortfall of cash could speak of deeper troubles within Saab. Many in the industry mourned the loss of Saab when GM cut it loose, thinking the brand was as good as dead.

Saab's cheery outlook on the matter served to offer up at least a glimmer of hope that things might be turned around and the company could return to its glory days of old. Today's news throws a wet blanket on that party.

The only word from GM or Saab on the production halt is that the issue with the Customs Office will be solved, "soon", reports Automobilwoche. How it will be solved, and whether that will be in time to save Saab from the cascading ramifications of a production halt in terms of labor, suppliers and dealers, remains to be seen.

The company has until March 4 to pay the customs debt.