Volvo Hires 40 Former Saab Staff as Bankruptcy Fallout Continues
Volvo has confirmed the recruitment of 40 ex-Saab employees and expects to hire more, as specialist engineering talent disperses following Saab’s bankruptcy.
Volvo has confirmed that it has recruited 40 former Saab employees in the aftermath of Saab Automobile’s bankruptcy, with the company expecting to hire another 100 ex-Saab staff in the coming period. The move comes as Swedish engineering talent is redistributed across the country’s automotive and technology sectors following the collapse of the historic marque.
Saab Automobile filed for bankruptcy on 19 December 2011, after a failed rescue attempt involving Chinese investors was blocked by former owner General Motors. The bankruptcy affected approximately 3,600 employees, most of them based in Trollhättan. As a result, the Swedish automotive workforce has seen rapid changes as companies move to secure skilled engineers and technical staff.
Saab engineers find new employers
In addition to Volvo’s recruitment drive, Combitech, a company owned by Saab AB, the defence and aerospace group, has taken on more than 200 former Saab engineers. These new hires are expected to work within the defence sector and as external consultants, reflecting the high demand for advanced automotive and systems engineering expertise in Sweden’s wider technology industry.
The dispersal of Saab’s workforce has created opportunities for other Swedish employers to strengthen their engineering teams. Volvo’s decision to take on former Saab staff is part of a broader trend, as the carmaker has previously announced plans to expand its workforce in Sweden and abroad, including major hiring initiatives in China. The company’s ability to absorb experienced engineers is seen as a way to accelerate development programmes and reinforce technical capabilities in areas such as safety, powertrain and vehicle electronics.
Ongoing effects of Saab’s collapse
The long-term impact of Saab’s closure continues to be felt in Sweden’s automotive sector. While some engineering talent is being retained within the country, the loss of a major carmaker has left a gap in the regional economy and supply chain. For more on the aftermath of Saab’s bankruptcy, including Sweden’s settlement of Saab’s European Investment Bank loan, see Sweden settles Saab’s €217 million EIB loan after bankruptcy.
There is also continued interest in reviving the Saab brand in some form. An Asian consortium has outlined plans to turn Saab into an electric vehicle specialist, though no production restart has been confirmed. For further details, see Asian Consortium Plans to Revive Saab as Electric Vehicle Brand.
