It would appear that in the middle of a spat of disorder, Swedish Automobile N.V. and Saab Automobile have finally caught a break. A few days ago, the long-standing automaker filed an appeal against the original denial of their voluntary reorganization request. The Swedish Court of Appeal gave the go-ahead to review the request and the verdict is out: the appeal has been granted. According to the Swedish Company Reorganization Act, a company can only be allowed reorganization if it appears that the purpose can and will be achieved. Saab’s purpose is to secure “short-term stability while simultaneously attracting additional funding.”
The Court of Appeal believes that those conditions exist and that Saab does have the power to bounce back. Because the voluntary reorganization is in order, the previous bankruptcy fillings by Swedish unions have been requested to be cancelled. On top of this temporary new order, Saab has released a revised business plan.
For 2012 and beyond, the company will be building a new financial structure to improve cost efficiency. Hopefully, the process of ditching duplication of work while “streamlining processes, shortening lead times, improving coordination between departments and simplifying the organizational structure” will lower Saab’s current cost structure. The company will also be looking at the most efficient way to restart production, which was halted in April.
Source: Saab
