After months (in reality ‘years’) of desperation to find a buyer, the Swedish SAAB auto manufacturer has finally sunk under the debt which could not be overcome, resulting in the Swedish carmaker Saab Automobile filing for bankruptcy protection, ending two years of efforts to save the iconic Swedish brand.
The final desperate efforts to organize help in China were obstructed by former Saab owner General Motors (GM) over licenses for technology being used by SAAB which belongs to former owners General Motors.
All three SAAB companies are involved in the bankruptcy, including SAAB Automobile Aktiebolag, SAAB Automobile Tools and SAAB Automobile Powertrain.
Early SAAB.
SAAB’s owner, Swedish Automobile, said in a statement that “the company without further funding will be insolvent, and that filing bankruptcy is in the best interests of its creditors.”
GM’s attitude towards the bankruptcy was given by GM spokesperson James Cain who said, “Each (previous) proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders. As such, GM cannot support any of these proposed alternatives.”
New SAAB.
In Sweden, daily newspaper Svenska Dagbladet reported that SAAB planned to present a plan to the court whereby the Swedish automaker would launch a technology development company in Holland, 50 percent of which would be owned by Chinese group Youngman.
However, it is also reported elsewhere that Youngman, responsible for the last cash injection into the beleaguered Swedish carmaker, is now unwilling to send SAAB any further funds.
In a communiqué, Swedish Automobile confirmed Youngman pulled out of the talks following GM’s negative statement.
The attempts to sell SAAB to Chinese partners have been seen as the last chance of saving the Swedish carmaker, which was already on the brink of bankruptcy when GM sold it to Swedish Automobile at that time called Spyker, for $400 million in early 2010.
SAAB initially began in 1937 as an aircraft manufacturer, something which became evident in the aerodynamic, sporty shape of its first concept car designs built in 1947 with the first production versions produced in 1949.
The 3,799 employees had their salaries delayed now for five months after SAAB was forced to halt production in April 2011 as suppliers stopped deliveries over unpaid bills. However, under a bankruptcy agreement the employees will be paid through a Swedish wage guarantee.
