Chinese manufacturer Youngman says it will sign a manufacturing and distribution joint venture with Saab in a “very short time” and has distanced itself from any request for job cuts.
Saab escaped from the jaws of bankruptcy filings earlier this week as the Gothenburg Court of Appeal ruled it could enter voluntary reorganisation – a move that will allow its thousands of staff to be paid overdue wages – but now the focus is shifting to the manufacturer’s new business plan and to its Chinese partners.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“We are pleased about the decision,” Youngman Saab project director Rachel Pang told just-auto from China. “We will continue discussions with Saab for the business plan and also we will hopefully…sign a manufacturing joint venture and distribution agreement in a very short while.
“Everything is just moved forward step by step which is good.”
Saab has dropped some broad hints it could cut jobs as part of its reconstruction plan, although no details of headcount implications have yet been revealed.
“Youngman did not ask [for] job cuts,” said Pang. “Saab has their senior management team and they will make decisions for Saab.”
Now that the Swedish automaker has entered protection, its nearly 4,000 workforce can be paid for outstanding August salaries and imminent wages for September.
A further month’s salary is available through Swedish State guarantee scheme, although should Saab resume production, the wages would have to be repaid.
