IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Friday, August 26, 2011

1,000 wage-earners so far affected by Saab's problems

According to the Swedish news media TTELA, almost 1,000 Swedish wage-earners have so far been affected by the troubles Saab has run into.

The Swedish association of suppliers has looked at 15 companies which has been affected by the troubles in Saab. The employees at these companies have either lost their jobs because of cut downs in the work force and because of bankruptcy at suppliers, or have gotten a notice that they might lose their jobs because of cut downs. If Saab is to go bankrupt, then the workers who have received a notice will also lose their jobs. Together with 4,000 emoployees at Saab and according to earlier estimates another 4,000 employees at different suppliers, sub contractors and service providers.

And on top of this, their families will of course be affected one way or the other. Losing your job is in many cases a dramatic social experience, both for the employee and the other members of the family. And it will be especially hard for families with young children and families where both providers lose their jobs.

When one looks at the Swedish auto industry, it is also clear that without Saab the supplier base will get smaller and the international supplier might even discontinue their operations in Sweden.

"The major international suppliers have begun to reorganize and some are already planning to move operations from Sweden. We would instead need to strengthen the cluster," said Svenåke Berglie, head of the Swedish association of suppliers, to TTELA.

In other words, saving Saab from bankruptcy is imperative both for thousands of workers and their families, but also for the future of Swedish auto industry.

The good news is that another SEK 25 million (less than EUR 3 million) for the partial sale of Saab Automobile Property AB is according to expected to be received next week. But this will of course not cover all incurred costs as the immediate cash need is at least EUR 17 million.