- Saab announced a sweeping reorganization plan on Monday, saying it will cut 500 employees, broaden its product portfolio and set up additional operations in China.
- Saab said its Chinese investors will provide "a minimum" of $840 million to restart auto production, settle the company's debts and to fund operations in 2012-'13.
- Saab said it will reduce structural costs by $155 million through job cuts and other actions and expects to become profitable in 2014.
VANERSBORG, Sweden — Saab announced a sweeping reorganization plan on Monday, saying it will cut 500 employees, broaden its product portfolio and set up additional operations in China.
Saab said its Chinese investors will provide "a minimum" of $840 million to restart auto production, settle the company's debts and to fund operations in 2012-'13.
Saab said it will reduce structural costs by $155 million through job cuts and other actions and expects to become profitable in 2014.
The reorganization plan was announced as the district court here on Monday approved the continuation of Saab's voluntary reorganization, paving the way for the beleaguered automaker to plan for the future.
Saab's plan includes "new products for traditional key markets and China which include the 9-5 SportCombi and the 9-4 X," it said in a statement posted on its corporate Web site.
The Swedish automaker said its long-term strategy included "repositioning Saab as a distinctive, near premium brand supported by a renewed and broadened product portfolio."
It is targeting sales of 35,000-55,000 cars in 2012 and 75,000-85,000 cars in 2013. Saab predicted "long-term volume outlook of 185,000-205,000 cars based on "broadened product portfolio in fast-growing market segments, capitalizing on access to Chinese market and strong profitability focus."
However, Saab's statement noted that it "has not received the funds from Pang Da and Youngman that have been committed for today."
Saab said it intends to establish a new ownership structure "with Pang Da and Youngman as strategic partners."
It also said it is planning a more flexible cost structure with a global production footprint and "cross-carline modular technology architecture."
Inside Line says: Rosy plans for an automaker that teetered on the brink of the abyss just a week ago.
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cz_75 says:
05:21 PM, 10/31/2011
3000, last I read. If they were smart, at least 500 would've tried to get another job by now.
qdp says:
01:46 PM, 10/31/2011
It sounds very strange. After the takeover agreement, Saab is not allowed to do anything like this until a new board is formed and a new CEO is appointed.
ed124c says:
10:58 AM, 10/31/2011
"has not received the funds..." Oh, oh.
How many workers does SAAB have? This article just passes over the fate of the workers. I don't care about SAAB making money, I just want to see the US and world economy working again. And you can't sell cars to people who are out of work or retired on a low income.