Saab said today it may reduce headcount as it implements a cost-cutting plan to secure its survival after a court gave the struggling carmaker temporary protection from creditors. Hit the jump to read the rest of the story.
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“This is a battle won, but not the war,” Saab CEO Victor Muller said.
Muller said the court decision meant employees could get paid by the weekend, adding that the company would meet creditors as part of the reconstruction process on October 31.
A Saab spokesman said it was not yet clear how many jobs would go nor how much Saab aimed to save in the process, which will focus on streamlining activities, shortening lead times and simplifying the organizational structure.
“All improvements should be implemented before year-end in order for Saab Automobile to have a new, competitive cost structure for the 2012 financial year,” the company said in a statement. “As a result of this initiative headcount reductions cannot be ruled out.”
Hakan Skott, IF Metall union chapter head at Saab, said he did not know anything about the plan. “We haven’t heard anything about it,” he said. “Furthermore, it is something for the administrator to evaluate the organization and make it as efficient as possible.”
Saab hopes protection from creditors will allow it to survive until China’s authorities approve a 245 million euro ($336 million) investment by car firms Zhejiang Youngman Lotus Automobile and Pangda. It hopes this will come in November.
Saab’s chances “have increased quite drastically as they have the time now to reorganize and get possible funding from China,” said Martin Crum, an analyst at Amsterdams Effectenkantoor BV. “It’s essential now that they figure out a way to deal with the suppliers. There’s still huge uncertainty.”
