European supplier body CLEPA is concuring with Saab's assessment it may have to shed jobs as part of its plan to emerge from reconstruction.

Against many observers' estimates the Swedish manufacturer managed to secure bankruptcy protection from the Appeal Court in Gothenburg this week - a procedure that will grant it immunity from creditors such as suppliers and unions for the time being.

However, shortly after that victory Saab announced "headcount reductions cannot be ruled out," while also announcing a raft of possible actions to reduce cost and increase efficiency.

"A lot of us have been surprised that Saab has not given notice to some of its people," CLEPA CEO Lars Holmqvist told just-auto. "But [Saab CEO] Victor Muller has been telling us his principle was that he would not get rid of anybody and he would be loyal to them.

"But harsh reality of reconstruction means you need to show positive cash flow."

Holmqvist also said from his members' point of view "most people would like to see cash on the table," as Saab moves to settle its considerable outstanding debts to many component makers given the "loss of confidence" engendered by the crisis in Trollhättan.

"Yes, I think cash is realistic, at least in the beginning, because if there is a down-payment on what is outstanding...for the moment people don't want a new situation where you expose yourself," said Holmqvist.

"If that is cash on delivery, which is the most simple way or a bank guarantee, wonderful."