Saab workers protest plans to wind down operation

Jan 12, 2010, 12:08 GMT

Stockholm - Hundreds of workers at ailing Swedish carmaker Saab's main plant in south-western Sweden left their work stations at noon, Tuesday, for a brief protest.

Unions said the 15-minute protest was aimed at Saab's owner, US giant General Motors (GM), that has begun the process to wind the operation down while also stating it was assessing last-minute bids for Saab.

Representatives of the white-collar and blue-collar unions said they have sent an open letter to the GM management headlined 'Why endanger US taxpayers' money,' urging them to sell the Swedish brand rather than risk 'huge cancellation costs and big risks of claims.'

GM on Friday said it had named a liquidator - AlixPartners - to wind the operation down, a process expected to take several months.

It was also evaluating several bids it had received for Saab, adding that this process would not be affected by the appointment of the liquidator.

Production at the Trollhattan plant resumed Monday after a four- week shutdown over the holiday season.

GM chairman Ed Whitacre however told reporters Monday at the ongoing auto show in Detroit, where GM also has its headquarters, that the bids received were not strong enough.

The proposed liquidator, which would be able to override the board and management, was to be approved by the Swedish Companies Registration Office.

Last week, unions protested against the move to appoint a liquidator.

Saab has some 3,400 employees in Sweden, most of whom are based at the main plant in Trollhattan, south-western Sweden. An additional 3,000 positions with subcontractors are at stake, according to the Automotive Supplier Industry group.

GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.