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.
| • SIGN UP FOR FREE NEWSLETTER • ALL BREAKING NEWS ON TWITTER |
Last Updated (Wednesday, 09 September 2009 20:17)
Pakistan arrested Swedes for 'Al-Qaeda ties'
Three Swedes – including a small child – has been arrested in Pakistan on suspicion of having ties with Al-Qaeda.
'Historical’ mistake to let Lehman Brothers fall
Allowing Lehman Brothers to collapse was “a mistake by historical dimensions”, Sweden’s Finance Minister Anders Borg said one year after the crash.
Sweden's Carl Bildt looks to Iran talks
EU must await the results of the upcoming nuclear talks with Iran before weighing any threat of future sanctions, Swedish Foreign Minister Carl Bildt said.
ABBA turns down ‘Mamma Mia!’ sequel
The characters from the hit film ‘Mamma Mia!’ may be back in a follow-up – but without the ABBA music.
Swedbank sets price in new share issue
Sweden's fourth-biggest bank Swedbank has announced the terms for its second rights offer in less than a year.
Swedish scientists to put an end to spam
Swedish scientists have found a way to put a halt to spam by tracking down where it originates.
More aid to Zimbabwe after greater reforms
Economic sanctions against Zimbabwe President Robert Mugabe will remain, Sweden said, although more aid could follow.
Falling interest rate swells Finnish deflation
Finnish prices dropped for the third month running in August.
Brazil sets deadline on fighter jet deal
Brazil has set a deadline to finalize its bid for its fighter jet contract, increasing pressure on Sweden's Saab.
Copenhagen climate talk in risk of failing
India's environment minister said the country will not agree to binding emission targets and that it would not be a disaster if global climate change talks in December fail.
• Britain warned of Danish climate talk collapse • UN: Copenhagen climate deal 'significant' • Brazil to be world's 'bridge' in Copenhagen talks
Swedish astronaut back on earth
The Discovery astronauts, with Swede Christer Fuglesang, has descended to a weather-delayed landing to end a demanding two-week mission to the International Space Station.
Saab makes final push to win fighter jet deal
Sweden's Saab has made a final push for the multi-billion-dollar contract to sell fighter jets to Brazil.
• Saab prepares for 'life after Gripen'
• Saab's fight in Brazil 'not yet over'
Shaky week in Stockholm as top might be nearing
STOCK MARKET – It’s been a wobbly week at the Stockholm stock exchange as actors fear that the top is looming nearer.
Swedish economy grew in second quarter
Sweden’s economy was not flat quarter-on-quarter – it grew 0.2 percent.
Energy efficiency to drive ABB through crisis
Swedish-Swiss ABB said that the battle against climate change and would lead the company through the global economic crisis.
Jens vs Jensen clash in Norway vote
Both Norway's Prime Minister Jens Stoltenberg and right-wing populist leader Siv Jensen could be knocked out of the race.
• Norway turns deaf ear to Brussels
• Voters mull political change in oil-rich Norway
