Posted on 10/19/2004 3:23:59 AM PDT by Cincinatus' Wife
Thousands of workers at Saab's last Swedish automobile manufacturing plant will stop working for two hours Tuesday, protesting a planned wave of job cuts by General Motors that will see 12,000 jobs in Europe eliminated by 2006.
Union leader Chresten Nielsen said the action wasn't a strike per se, calling it instead an informational meeting during work hours.
"There is a development agreement, and according to this the labor organizations have the right to give information during working hours," he said. "We have never used this possibility in a way that has stopped production. This will be the first time."
He said that production would be idled for two hours.
The plant employs more than 6,000 workers and produces more than 100,000 cars annually. More than 500 jobs, including 250 on the manufacturing line and another 250 in research and development, are to be cut through 2005.
GM announced last week that it expects to get rid of 12,000 jobs in Europe by the end of 2006 - most in Germany - to cut euro500 million (US$620 million) in costs annually at its money-losing Opel, Vauxhall and Saab operations. GM says it must reduce overheads to cope with sluggish consumer demand and increased competition from Japanese and other European carmakers.
Since General Motors acquired a stake in Saab Automobile AB in 1990, the automaker has posted profits just twice. GM bought Saab outright in 2000.
The company, based in Trollhaettan in southwestern Sweden, is part of the GM Europe division that lost US$549 million in 2002, hurt by sluggish demand, a costly launch of the 9-3 sedan and appreciation of the Swedish krona against the dollar.
Saab's plant in Trollhaettan is currently in a fierce fight for survival, after GM announced last month that the production of mid-sized cars in Europe, currently divided between Trollhaettan and the Opel factory in Ruesselsheim, Germany, should all be handled by the same plant.
Vauxhall? They still make those things in Europe? Those were junkers,like the epidemic (Epic) I'm amazed GM kept that line running.
They should move the Saab line to the USA, it's the only half decient car they make. The heck with keeping plants in Europe, they hate American money and capitolism anyway.
Saab can't compete with Volvo...It's a dying brand. They are literally giving the cars away. I'd estimate that GM is losing thousands on each car...The vast majority of sales are leased at those heavily subsidized rates...Let's say, for example. that GM leases a $30,000 Saab for three years, and heavily subsidizing the lease. They're also assuming a $20,000 residual value in 3 years. However, more likely it'll be closer to $15,000...THEN GM books the loss...
I assume you are talking about the Europeon market?
What about the North American market? Saab makes a couple sporty cars 9-2x, 9-3 convertable that should do well here, if it wasn't such a pain to get service and parts for them.
I was talking about the US market. Saab caanot survive selling only in Europe. They don't have the $$$ to invest in new models, tehniologies, without GM's deep pockets, and it only works for GM IF they can sell cars in the US..It's ad..one of the best cars I ever owned was a 1986 99E hatchback 5 speed...had it for 10 years ..over 120k miles..taught both daughters to drive in it..never had a problem with the thing..
ping
Wife drives a Saab.
A good car, IMO.
I guess that that is all the more reason to close out the Europeon factories and make profitable model lines here.
I've never owned one, but people I know have, and they agree with you all that they were good cars.
The newer models, the last few years, are aweful. Way overpriced, and way to small..if you push the front seats back in the 99 sedan...they hit they read seat...and Saab doesn't have an SUV..it's killing the dealers..comapred to the great lookign new Volvos...
The wife here drives an '88 900 Turbo Convertible with 175,000 miles on it. No major problems. Fun little car. It scoots too!
(BTW, I have a cousin who works at the SAAB plant in Trollhättan.)
I've no clue about how this actually works out, but "The plant employs more than 6,000 workers and produces more than 100,000 cars annually." Isn't a product/worker ratio of 16:1 kinda high?
Of course, the number includes admin and support staff, but they seem to be quite overstaffed.
It is still a fun car to drive and get good gas milage.
I'm afraid that the new Saabs aren't like it.
I think that we will be hearing a lot about this type of thing all over the world when China starts making and shipping their cars in a year or two. China I understand is going to try to flood the American Market soon with new cars.
I didn't realize that GM had bought SAAB! Of course, I don't really keep up on automotice news.
Back in 1979 and 1980, I worked at a SAAB dealership in KC, and I was really impressed with how well built (and easy to work on) the 900's were. Terrific little cars, although I always thought that where they put the ignition key was a bit weird, but I could have gotten used to it.
The turbos were seriously fast, and very reliable. The dealership I worked for actually raced one, and it was amazing to see just how hot the turbocharger got. It would turn a bright cherry red!
Mark
What a Saab story.
Those 900's are classics. Daughter has an '86, which she loves.
Kewl..it'll be the, what, 35th SUV model available,and coming out just as the craze starts to subside..
Sweden's not on the Euro yet???
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