Swedish Court Rejects Saab’s Reorganization; Auto Maker to Appeal

Saab Automobile will look for ways to improve its efficiency, such as cutting jobs and streamlining operations, as part of a review of the auto maker’s business plan after its appeal for reorganization receives approval today from the Swedish government.

Saab’s first filing for bankruptcy protection in its home country was denied.

The auto maker says in a statement confirming its successful appeal that Swedish courts now see “reasonable cause to assume” reorganization can be achieved.

The auto maker’s future hinges largely on slow-coming regulatory approval of a E245 million ($350.6 million) majority investment in its business by Chinese partners – dealership conglomerate Pang da and auto maker ZhejiangYoungman Lotus Automobile.

Saab says its business-plan review will include eyeing ways to eliminate duplication of work, streamline processes, shorten lead times, improve coordination between departments and simplify its organizational structure.

Potential job cuts will not be ruled out, the auto maker warns, adding it plans to implement changes before the end of the year with hopes for a more competitive cost structure for 2012.

Swedish Automobile, formerly Spyker Cars, bought Saab from General Motors two years ago.

The auto maker’s independence has been rocky, marked most recently by delayed payroll payments to its 3,700 employees and suppliers.

Its sole Trollhattan plant has been shut down since April.