Saab prepares for 'life after Gripen'
Swedish defense firm Saab, maker of the Gripen fighter jet, will reorganize to meet tougher conditions for the industry.
| Related news: • Brazil turned down Saab's fighter jet • Thailand turns down Swedish fighter planes |
Lindköping-based Saab AB, specializes in military defense to civil security, said Wednesday it would reorganizes into five business areas as the global defense industry is subject to significant changes. The adjustment could also be seen in the light of a long row of lost fighter jet deals.
"We are now reorganizing to meet the new conditions for our industry, which means that we must grow in world markets, develop clearer product offerings and secure a strong position within civil security," said Saab chief executive officer Åke Svensson. "Saab´s new organization is designed to enable further synergies."
The news about the organization shake-up came the same week as Brazil’s president Luiz Inacio Lula da Silva indicated that the country would turn down Saab’s Gripen fighter plane and instead buy 36 hi-tech Rafale fighter jets from France in a deal worth billions of dollars.
The Brazilian setback was another blow for Saab as Norway recently turned down the Swedish fighter jet and chose Lockheed Martin jets Joint Striker Fighter and Switzerland put a potential deal on hold. In May the Thai government scuttled its plans to purchase six Gripen due to political turbulence in the country.
“The company is trying to be clearer on which direction they want to head, and the sooner they convince investors and analysts that there is life after Gripen, the better,” Sandy Morris, an analyst at Royal Bank of Scotland Group Plc in London, told Bloomberg.
The five new business areas are called Aeronautics, Dynamics, Electronic Defence Systems, Security and Defence Solutions, and Support and Services. They will report to Lena Olving who’s been appointed chief operations officer.
In June Saab Bofors, specializes in military materiel such as missile systems and anti-tank systems, said that 370 employees are to loose their jobs as the Swedish government change direction regarding military materiel spending.
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Last Updated (Wednesday, 09 September 2009 20:17)
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Brazil will continue to negotiate with the three companies competing to replace its aging fleet of fighter jets.
