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Saab owner files for bankruptcy

edited December 2011 in Not Sports Related

Saab has filed for bankruptcy after failing to secure its future following a protracted process of finding a saviour.

Can Saab survive?

Parent firm Swedish Automotive N.V. has made the filing for bankruptcy with the District Court in Vanersborg, Sweden this morning (Monday 19 December).

The firm said it does not expect to get back any value from its shares in Saab Automobile, and is thus completely writing off its interest in the car brand.

The development has come despite Chinese firm Youngman committing funds to the Swedish premium car brand. Former owner General Motors refused to approve these plans, though, arguing that the proposals involved the transfer of control “in a manner that would be detrimental to GM and its shareholders.”

Because of this, Youngman withdrew its offer of funding to continue and compete the reorganisation of Saab Automobile.

“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.”

The court is expected to approve the filing today, and will appoint receivers for the famous Swedish brand shortly.

It is a sad end to a proud car company with a 63-year history that, in its day, was a match for companies such as Audi and BMW. It is, however, not yet clear whether the Saab name itself will continue in some way.

Comments

  • Saab made great cars until they were GMized.
  • So the Chinese have decided that Volvo is a goer but Saab isn't. It's interesting to see that several Chinese companies are now using European/English names for their buyouts, 'Youngman' and 'Geely' .. how long before a major European bank or banks 'fall into Chinese hands' and nobody notices ? ..  I guess that Saab aircraft remains a Swedish controlled company and did the Volvo deal include trucks as well as cars ? >>> The Times They are Definitely a'Changing 
  • Saab made great cars until they were GMized.
    Got a 9000, a lovely thing (except at the petrol station) and when it dies I'll get another.

    Shame, but Saab's aren't the idiosyncratic things they used to be,
  • Sad news indeed - I had a SAAB 9000 for a few years - did 127,000 miles in it and it was a great car - very reliable, fast and comfortable.

    It appears the reason Volvo will survive and SAAB will not is that GM are unhappy about the transfer of trade "secrets". I find it strange that GM can get away with it.
  • So the Chinese have decided that Volvo is a goer but Saab isn't. It's interesting to see that several Chinese companies are now using European/English names for their buyouts, 'Youngman' and 'Geely' .. how long before a major European bank or banks 'fall into Chinese hands' and nobody notices ? ..  I guess that Saab aircraft remains a Swedish controlled company and did the Volvo deal include trucks as well as cars ? >>> The Times They are Definitely a'Changing 

     

    GM agreed to let the Chinese take over Saab, but pulled out of the deal when it meant throwing in the rights and know-how to a few cutting edge automotive patents.
  • GM have patents? I'm amazed. Rubbish cars.
  • GM have patents? I'm amazed. Rubbish cars.
    All car companies have thousands of patents and are keen to protect them - to be honest I'm surprised if GM had a problem, Ford didn't have one with selling off Volvo.
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