Saab Automobile, part of General Motors, has announced a cost cutting initiative, axing 20% of its workforce in Sweden, streamlining its engineering organisation and working more closely with GM's units to cut costs. In the first half of 2002, Saab posted a loss of $US131.4 million - blaming its poor performance on high start-up costs for the new 9-3, investments in its Trollhattan plant and a negative dollar exchange rate.