Car Industry in Crisis

In what has been a bad week for the Swedish car manufacturing industry, only worsened on Friday as more redundancies were announced.

Swedish company Saab technologies say they plan to lay off 500 employees over the next two years in order to cut costs.

Compared to the same period last year, company profits have almost halved and sales are down by five per cent.

Saab say the majority of staff leaving the company will be due for retirement.

The Swedish firm admit an uncertain prognosis for the future, but they hope to stick to their target of boosting sales by three to four per cent by the end of the year.

Volvo personal cars and truck division have already said they will together cut up to 5,000 jobs this year. The scaling down of production at both Scania and Saab has likewise had a knock on effect on subcontractors.

Students studying to work within the car industy say they are also worried about their future job prospects.

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