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Saab to cut 200 jobs


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Saab to cut 200 jobs

Cuts follow reduction in 2010 sales target

November 19, 2010 15:16 CET

STOCKHOLM (Reuters) -- Saab plans to cut its work force by about 200 employees, which represents about one-eighth of its staff, a union official said on Friday.

Hakan Skott, a union representative at Saab, which is based in the western Sweden town of Trollhattan, told Reuters the company, which is owned by Dutch supercar maker Spyker Cars NV, had told staff it would lay off 200 workers, out of 1,600 employed.

No one at the company was immediately available to comment.

"I'm not exactly surprised (about the layoffs). We reduced our sales forecast just a couple of weeks ago and there is a decline in sales every year around Christmas and at the end of the year," Skott said. "I'm sure that by February-March we will see an upward trend and people will buy cars again."

The Swedish company was in the process of being wound down by General Motors Co. earlier this year, but Spyker stepped in at the 11th hour to take over the automaker, which continues to have strong ties to GM.

The future of Saab rests on finding more manufacturing partners and cutting unit production costs, its top executives told Reuters on Tuesday.

CEO Jan Ake Jonsson said on Tuesday that Saab's target is to break even at sales of 85,000 cars annually, whereas it currently needs "north of 100,000" sales to break even.

On Oct. 29, Spyker cut Saab's sales target to 30,000 to 35,000 cars in 2010 from a previous target of 45,000. This was down from a forecast of 60,000 made in February.

"There is absolutely no reason to worry. Our plans for the future still stand. Next year, we will build 80,000 cars", business daily Dagens Industri on Friday quoted Spyker's CEO Victor Muller as saying.

He also said the staff being laid off were temporary employees.

"You take them aboard when you need them and when they are not needed, they are not on board," the paper quoted Muller as saying.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101119/ANE/311199979/1193#ixzz15kBskxQv

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Saab to Cut Workforce after Poor Sales Forecast

FRIDAY, NOVEMBER 19, 2010

Saab-r-1.jpg

Sweden-based Saab Automobile plans to reduce its workforce by 200 employees or about one-eighth of its current staff, according to report from Reuters citing a union official. Hakan Skott, a union representative at Saab, told the news site that the move was expected after the company's new owner, Dutch supercar maker Spyker, cut the firm's sales target from 60,000 units in February, to 45,000 a few months later and finally to just 30,000 cars at end of October.

"I'm not exactly surprised [about the layoffs]. We reduced our sales forecast just a couple of weeks ago and there is a decline in sales every year around Christmas and at the end of the year," Skott said. "I'm sure that by February-March we will see an upward trend and people will buy cars again," he added.

Saab has said in the past that it needs to sell around 80,000 cars per year to break even.

On Friday, Swedish business daily Dagens Industri quoted Spyker's CEO Victor Muller as saying, "There is absolutely no reason to worry. Our plans for the future still stand. Next year, we will build 80,000 cars".

As for the staff being laid, Muller told the newspaper that they were temporary employees. "You take them aboard when you need them and when they are not needed, they are not on board."

Source: Reuters & Dagens Industri

link:

http://carscoop.blogspot.com/2010/11/saab-to-cut-workforce-after-poor-sales.html

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