Jobs May Go As Saab Bankruptcy 'Cancelled'

The Swedish Automobile N.V. (Swan) has just announced that Saab Automobile AB (Saab Automobile) is running an 'efficiency improvement' initiative as part of a broader review of the company's business plan for 2012 and beyond.

Jobs may be lost as it aims at creating a more flexible and more competitive cost structure for the company.

A statement this week said that this initiative also reflects the effects of the prolonged production stoppage since April of this year and is an important element of the voluntary reorganisation plan presented at a creditors meeting.

During the coming weeks, Saab Automobile will identify areas throughout the whole organisation where efficiencies can be gained.

As a result of this initiative 'headcount reductions' cannot be ruled out - in other words, jobs may be lost.

It will focus on both fixed and variable costs and aims to create a lower and more flexible cost structure within Saab Automobile by eliminating duplication of work, streamlining processes, shortening lead times, improving coordination between departments 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 news comes as Saab Automobile received approval for their proposal for voluntary reorganisation from the Court of Appeal in Gothenburg, Sweden.

A company statement said that the purpose of the voluntary reorganisation process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions.

The Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganisation will be achieved.

In the decision, the Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.

As a consequence of the Court of Appeal ruling, Saab Automobile will request for the earlier bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.

(BMcC)