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GM’s Saab Unit to Cut 1,300 Jobs

From Bloomberg News

General Motors Corp.'s Saab luxury car unit will eliminate 1,300 jobs, or almost 20% of its Swedish work force, in a bid to halt seven straight annual losses.

General Motors also is cutting 3,000 jobs at its unprofitable German Opel unit this year and reducing production capacity.

Saab has posted an annual profit only twice since the world’s No. 1 carmaker acquired a stake in 1990. It contributed half of GM Europe’s loss, or $119 million, in the first half.

The U.S. automaker also owns a 20% stake in Fiat’s auto unit, which has posted losses in seven of the last eight years.

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Fiat Auto wants to cut 8,100 jobs and shut down production lines. Fiat has an option to force General Motors to buy the remaining 80% of Fiat Auto by 2004.


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