Saab to Cut 750 Jobs as it Fights for Survival
Saab, the struggling Swedish carmaker that is being jettisoned by its parent General Motors, is to cut 750 jobs as it attempts to stay in business.
The company said that Swedish-based investors were interested in buying the operation, which will no longer be supported by GM after the end of this year.
It said that between six and eight very large companies were interested in buying the loss-making unit.
Last month Saab sought protection from its creditors in the Swedish courts under a “reorganisation” arrangement.
It has hired Deutsche Bank to look for would-be buyers. Saab is in competition in its hunt for a buyer with Volvo, its domestic rival, which is being sold by Ford, its American parent. It has been reported that the Geely car group, of China, is interested in buying Volvo.
The job cuts will come at Saab’s only factory, at Trollhattan in southwest Sweden.
At present 4,100 people work for the carmaker with about 2,000 working in production at the Trollhattan factory.
The job cuts will fall heavily on production workers, with 650 blue-collar jobs going along with 100 white-collar ones.
Saab said that the redundancies were “a direct consequence of the recession and the global economic downturn”.
The company said that Swedish-based investors were interested in buying the operation, which will no longer be supported by GM after the end of this year.
It said that between six and eight very large companies were interested in buying the loss-making unit.
Last month Saab sought protection from its creditors in the Swedish courts under a “reorganisation” arrangement.
It has hired Deutsche Bank to look for would-be buyers. Saab is in competition in its hunt for a buyer with Volvo, its domestic rival, which is being sold by Ford, its American parent. It has been reported that the Geely car group, of China, is interested in buying Volvo.
The job cuts will come at Saab’s only factory, at Trollhattan in southwest Sweden.
At present 4,100 people work for the carmaker with about 2,000 working in production at the Trollhattan factory.
The job cuts will fall heavily on production workers, with 650 blue-collar jobs going along with 100 white-collar ones.
Saab said that the redundancies were “a direct consequence of the recession and the global economic downturn”.
quoted from: Times Online
