Chinese are starting Saab’s engine – preliminary restructuring plan announced image

Today was presented a preliminary restructuring plan of Saab Automobile, developed by the management team and supported by all the parties involved in the reorganization procedure, current or future owners and process administrators. Practically, the company aims to obtain a maximum profit by the right mixing of Saab Automobile’s capabilities, brand and product portfolio, with the distribution key strength of Pang Da in China and the manufacturing expertise of Youngman.

According to the plan, the short and long term funding is currently assures, as the Chinese companies Youngman and Pang Da agreed to provide 50 million euro for reorganization and an additional 600 million euro for production resuming, debts coverage and 2012-2013 operations funding. Also, there were allocated important amounts for Saab Automobile’s expansion in China, as this is regarded as major growth market in the near future.

Also, the stakeholders are regarding 2012 and 2013 as financial transition years, expecting profit starting 2014. On short and medium term, they are aiming a sales targets for 2012 of 35-55,000 cars and 2013 of 75-85,000 cars, expanding on the Russian market and other emerging markets, diminishing structural costs by SEK1 billion, reducing headcount by 500 employees and generally regaining trust of all the collaborators.

On long term, the company will have a target volume of 185-205,000 vehicles, driven by three main growth factors: excellent portfolio in fast growing market segments, capitalizing on access to Chinese market and a keen attention in order to obtain a strong and sustainable profitability..
Saab Automobile AB announced also the appointment of a new Vice President & Head of Manufacturing and Quality in the person of Göran Ejbyfeldt as effective 1 December, on top of his current role as Executive Director Quality, Environment & IT. Also, Kjell-Åke Eriksson is the new Executive Director Purchasing.