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car industry

Saab to lay off 500 staff

Published måndag 31 oktober 2011 kl 10.05
Both Victor Muller and representatives for the Chinese buyers were at the press conference in Vänersborg. Photo: Scanpix.

Swedish-based carmaker Saab says that 500 employees will be laid off as part of the takeover by Chinese companies Pang Da and Youngman.

At a meeting in Vänersborg Saab says that its business plan would involve making a profit as early as 2014, which would mean selling between 175,000 and 200,000 cars a year. The target for next year is just 35,000-55,000.

Saab says that two Chinese firms, Pang Da and Youngman, are prepared to take over the company, and invest over a billion US dollars. Pang Da will own 40 per cent and Youngman 60 per cent. The factory in Trolhätten will stay, but Saab also wants to set up plants in China itself.

The business plan has no exact details about how creditors are to be repaid, but says that cuts of about Us$155m will be made.

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