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UK jobs under threat as Saab seeks bankruptcy protection
Evening Standard20.02.09
THE future of car maker Saab was in doubt today putting thousands of British jobs at risk.
The Swedish firm filed for bankruptcy protection to safeguard it from its creditors while it attempts a last-minute restructuring plan.
It has more than 80 dealerships in the UK employing 3,000 staff and its demise highlights the crisis crippling the motor industry as recession deepens.
Figures today show car production in Britain slumped by almost 60 per cent last month as demand collapsed.
The Society of Motor Manufacturers and Traders said only 61,404 cars were made in January, down 58.7 per cent on the same month last year. Five out of six cars made here were allocated for export as domestic demand plummeted.
Unions today called for government support.
Tony Woodley of Unite said: "The alarm bells are ringing loud and clear. This is simply the greatest crisis to face our car industry. Government has attempted to get the banks to do their job and support business, but money is simply not getting through. Good businesses are now on their knees.
"We need action now to save our industry. Our companies and skills are world class, and manufacturing is still an engine of our economy, but unless urgent steps are taken, jobs will be lost in their thousands for good, and the people and communities of this country will suffer for generations."
Car makers around the country have closed factories, cut production, and slashed thousands of jobs in recent weeks.
BMW is cutting 850 jobs at its Mini factory at Cowley near Oxford, 1,200 jobs are going at Nissan in Sunderland, and 600 face the axe at Aston Martin.
Jaguar Land Rover, Bentley and Toyota have all announced job cuts or production reductions and workers at Vauxhall's UK plants face an uncertain future after parent company General Motors announced 47,000 job cuts worldwide.
Saab managing director Jan Ake Jonsson said the reorganisation was "the best way to create a truly independent entity that is ready for investment".
Reader views (4)
I still believe the Tories were in power when the Luton Vauxhall plant was closed and dont beleive that Ellesmere port will close until the Tories get back in power.
- Keith Price, Luton, England
When GM bought Saab, they bought the name and goodwill,Saab cars were reliable,safe and had the carisma of unusuality. Now with the advent of the Internet buyers are more informed. There cannot be many potential Saab buyers who dont know that they are buying a Vectra with a slightly different body.And I cannot believe thatthey are made any better. UK car dealers will go the way of the 1960's Coal Merchants when gas central heating came in, they will dissapear. Nobody felt sorry for the Coal Merchants then, no government money was asked for. Its a changing world.
- Jim Alan, Kendal
Hmm, my saab 9-3 has just been written off due to a faulty fuel pump, which would cost £3000 to fix due to its location inside the engine. They are too complicated, always having an automated something or other failing. What happened to the days when you expected your car to live for 20 years or more - car manufacturers have, like a lot of similar industries, become greedy...
- Steve, kings langley
Sorry guys but the Saab 9000 I owned was the worse car ever. The 9-3 hasn't changed for years apart from the odd cosmetic mod. It is still a very old Vauxhall Vectra underneath. Not really surprised.
- Adam, Harrow, UK
