Saab said it would cut 500 jobs as it looks to strip out SEK1bn (US$155m) of cost and repay creditors who estimated they are owed around EUR150m.
The news comes as Saab is currently engaged in a meeting with its creditors at Vanersborg, just north of its Trollhättan factory and follows last Friday’s (28 October) 100% proposed sale to Chinese companies Youngman and Pang Da.
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Further details from the Swedish automaker reveal it has set a production target for 2012 of 35,000-55,000 vehicles, with a total of 75,000-85,000 the following year and an eventual ramping up to 185,000-205,000 cars. However, Saab does not expect to return to profitability before 2014.
A statement from Saab this morning (31 October ) said: “Pending the approval from all relevant parties, short and long-term funding for Saab Automobile is assured: Youngman and Pang Da have expressed their commitment to provide EUR50m, to fund Saab while in reorganisation. In addition, the Chinese investors will provide a minimum of EUR600m in funding to restart production, to settle the company’s clear and due debts and to fund operations for the 2012-2013 medium-term timeframe.
“To provide funding for the revised business plan and provide long-term financial stability the new Chinese owners have also budgeted funding for the planned expansion of Saab’s portfolio and additional operations to be set up in China. Saab Automobile has not received the funds from Pang Da and Youngman that have been committed for today.”
Other plans include a production restart supported by an existing order bank, the acceleration of access to China, new distributorship agreements in other emerging markets such as Russia, new products for traditional key markets that represent 65% of volume and China which include the 9-5 SportCombi (wagpn) and 9-4X crossover (based on a GM model and built by that automaker in Mexico).
