Saab presents a news re-organisation plan and opens about the future


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Monday, 12 September 2011
Saab automobile which is tussling with time and its workers for survival presents today a new business plan to reorganise its company along with the Chinese vehicle manufacturer Youngman to develop three new car models.

In papers the company presented at an appeal court to improve its chances of legal guarantee for re-organisation, Saab Automobile says its management now wants to get open about their future plans.

The most interesting aspect, according to Swedish television which reports on the issue is that Saab says that the cooperation with Youngman will lead to Saab to become a completely new and more broad-car companies, in what it refer to as "Expansion of product portfolio prot"

"This collaboration provides the basis for the expansion of Saab's product portfolio with three car models that have not previously been part of the Company's current or future portfolio," contained in the in the Annex to the four Court of Appeal papers .

In plain language, Saab, will now have three car models in the future and have a much broader product portfolio. What is at stake is one bets on a smaller car (9-1) and two models, both larger than the current 9-5.

The big cars are primarily intended for the Chinese market. Since the joint venture will be located in Sweden, it also expected that thousands of jobs would be secured, because it requires substantial resources to pick up new cars.

Through the reorganization, the structural costs are also expected to be reduced by a fifth and a purchasing partnership with Youngman will also result in reduced purchasing costs, writes Saab Automobile in an attempt to show how much effect a reorganization of the company could deliver.

According to Saab, there is the waiting of very large changes that are underway by the contract concluded with the Chinese car companies, Youngman and Pang Da. The two companies have jointly bought a majority stake in Saab and paying Skr2.2 billion provided the Chinese authority, NDRC (National Development and Reform Commission) gives its approval.

The two companies also write that they are prepared to inject more cash if needed to support Saab in the future. And Pang Da, which is China's largest car retailer, writes that the company sees great potential for Saab in China.

According to Saab's own forecasts, cooperation with Pang Da will result in a sale of approximately 40.00 cars annually in three years. This is more that what Saab sold worldwide last year.

Saab also reveals that it applied for a patent for a new concept that will drastically reduce fuel consumption in the future. Through a combination of electric motor and a smaller internal combustion engine fuel consumption could be reduced by as much as 75 percent.
By Team

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