Saab on brink of extinction after bankruptcy filing

By Jez Spinks | December 20th, 2011

Swedish car maker Saab has filed for bankruptcy, setting up an end to its protracted struggle for survival.

The Swedish brand’s parent company, Swedish Automobile N.V (Swant), announced the move yesterday on the same day a Swedish court was due to decide on whether the company could remain protected from creditors.

Swedish Automobile issued a statement announcing the bankruptcy and blaming former Saab parent company General Motors for blocking critical investment from a Chinese company, Youngman.

“Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning,” said the statement on Saab’s official media site.

“After having received the recent position of GM [General Motors] on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded.

“The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.

“Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.”

GM has refused to back any of the proposed Saab deals with Chinese companies, citing that the transfer of its technology still used in Saab models risked compromising its own fortunes in China, the world’s biggest new-car market.

The CEO of Swedish Automobile, Victor Muller, says he hasn’t given up on Saab yet, telling a news conference yesterday that the brand still had potential investers who could buy the car maker from receivers.

“There are parties out there that have expressed an interest to pursue a possible acquisition of Saab from bankruptcy,” said Muller. “Although this may seem like the end, it is not necessarily so.”

Saab’s expected demise will end a 66-year history in the car business, though the company was founded – as Svenska Aeroplan Aktiebolaget (Swedish Aeroplane Company Limited) – in 1937 as a manufacturer of military aircraft.

It was established in Trollhatten, Sweden, where it built its cars until production stopped in April this year after it hit troubles.

Dave S

With all the car makers in the market ther should have been room for SAAB. Where was the swedish govt? Why were they not protecting their citizens jobs by assisting SAAB where needed?
Where is Sweden when it was time to help SAAB? Where was GM, since sales of SAAB is sales of GM powertrains and componentry too?

What a mess.

New models SAAB’s being previewed looked good too.
Bob

What happens to all the Saab’s sitting on the dealerships in Australia?
Will they practically give them away??
John-

I remember looking under the bonnet of on many years ago… The engine was fittet ‘ Arse about ‘.

What should have been at the front was at the firewall…The flywheel was at the front feeding power in to the transmission.

Ps… Why should the swedish government put any money in to it. Why build cars no one wants to buy.

S*** Boxes !!
Wayne Blacker

GM are the ones that killed SAAB – totally depleting it of brand image and raping it of engine technology for it’s own gains.

SAAB deserves better than this.

Anonymous

I agree. With just a little investment, GM could have made SAAB into a haloed brand like Audi is to Volkswagen. But we know now that investment is something GM was incapable of at the time. Dumb decisions like the Saabaru made a bad (ha! – BAAD?) situation worse.

Anonymous

What a contrast. Two Swedish brands, both bought by American companies, both to be later sold on to others. Ford kept Volvo going along its natural development course, separate from normal Ford development, so that when it was sold it was still a relevant and innovative brand. GM tried to “integrate” SAAB, with the result that it ran the brand into the ground. It reminds one of when GM thought that people would swallow the Cadillac Cimmaron – a badge engineered Camira, or a Cadillac version of the then ageing SAAB 9-3.
Shak

It doesnt make much sense that SAAB would be a threat to GM in China. GM is one the most well established brands in China, with Buick enjoying lots of success. SAAB is very distinct and most of their products wouldnt be direct competitors to GM cars.

26

It was mainly because the Chinese company that wanted to buy them is known fore stealing IP which woud have cost GM millions

ray

Ford didn’t seem to have much concerns about Volvo bought by the Chinese a couple years back?

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http://twitter.com/klowik klowik

Don’t worry, we’ll see SAAB’s model continues to shine in some future Chinese cars models but with different logos!!