By on August 11, 2011

Just three weeks after Saab narrowly avoided being pushed into bankruptcy by supplier SwePart, SvD.se reports that three other suppliers have now initiated the bankruptcy process by requesting that Sweden’s national debt bailiffs pursue their debts. One Spanish supplier is reported to be foreclosing on €2m ($2.8m in debt), while two of the rebelling German firms are said to be owed at least €5m each. And though Saab says it is meeting with the Spanish firm to try to hammer out a deal,  SvD reports that four of the 14 outstanding claims against Saab have run out of time. Lars Holmqvist, head of the European Association of Automotive Suppliers argues that, by paying some suppliers and not others, Saab is de facto bankrupt, and that a trustee should be brought in to pay suppliers in order of priority, rather than order of Saab’s necessity. Meanwhile, Saab CEO Victor Muller has been in Brazil and the US, trying to bring new investors on board, as  its Chinese funding won’t be approved for two-to-three months, if ever. Meanwhile, “taxes and fees” must be paid by Friday, August salaries are due in just two weeks, and Muller cut his latest money-raising trip short to reassure workers back in Trolhättan. But according to thelocal.se, even the most optimistic of union leaders hope Saab will have a new CEO soon. Do I hear the fat lady warming up her vocal cords?

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14 Comments on “Three Suppliers Request Saab Bankruptcy, August 16 Is Judgement Day...”


  • avatar
    gslippy

    Spelling note: “Judgment” only has one “e” in it.

    As for Saab, this is no surprise. Manufacturers want to get paid for their products and services – they can’t live on emotional good will forever.

    • 0 avatar
      alexxbailey

      I was saddened by this news back then, so I’m pretty much in glee with its return. When a judge denied Saab’s request for protection for bankruptcy, the vehicle maker shut down. What they did to Saab was nasty. It’s great to see Saab back hopefully up on their feet again, they are an important part of motoring history who always did things a little differently to all the other car manufacturers. I am glad for their success.

  • avatar

    In Brazil?

    Was he talking to Eike Batista? If he was it wasn’t to out money in SAAb, but for Batista to buy it out. Batista is a billionaire with interests in mining, steel among other (many) things. Analysts say he hankers to own and produce a reail Brazilian car company. Has talked to every body from the gov, to Tata, to now Saab. I wouldn’t bet against the guy

  • avatar
    GS650G

    And the band starts to play “Nearer my God to thee”

  • avatar
    MOSullivan

    This will be a continuing problem for SAAB. It now owes so many suppliers that it’s like whack-a-mole. Pay off one to avoid bankruptcy and another one will pop up.

    Most countries have laws against insolvent trading. A company that knows it can’t pay all of its bills can’t continue in business. To do so would be a form of fraud since those who supply goods and services to it act in good faith that they will be paid. By shutting down production SAAB might not be guilty of insolvent trading but paying off creditors when they threaten bankruptcy proceedings and leaving the others holding their unpaid bills is dodgy practice.

    • 0 avatar

      I recommend caution before jumping to conclusions on bankruptcy law. This is an arcane area to begin with. Also, countries are different. More so, many countries in Europe changed their laws recently. I’d leave the lawyering to the lawyers.

  • avatar
    CurtInFalcon

    Saab has dodged bankruptcy so far and I think that a deal can be made with these three creditors. The creditors will see more money by accepting a deal than if they force Saab into insolvency and then become a small part of a long line of other creditors. And perhaps the mysterious investor can provide the much needed cash to get production rolling again.

  • avatar
    GS650G

    OK, so production starts rolling again. Will sales follow?

    • 0 avatar
      CurtInFalcon

      Saab has orders for 11,000 cars and they produce 200 cars a day. This will keep the factory rolling for 11 weeks and then, who knows. I’m a huge Saab fan but I don’t see their sales increasing at all. Right now, the brand is too damaged. Perhaps if the Chinese government approves the deals with Pang Da and Youngman, people will see that Saab is stable and will buy their cars again. For the U.S. market, I don’t see sales increasing unless Saab can afford to advertise their products aggressively. Lack of marketing has really hurt sales as most Americans think the brand dies when GM almost shut it down in 2010.

  • avatar
    Rdk3000

    Saabs had two weeks to survive for 3 years now. As with all the doom and gloom stories about Saab; I’ll believe it when I see it. Sorry, kind of lost interest in the day-to-day Saab saga. Let me know when they start making cars again or close their doors forever.

  • avatar
    DC Bruce

    Meh. Even the B&B are silent (or, more likely, exhausted) in the face of the continuing drama from Sweden.

  • avatar
    Bryce

    Even if Saab build to fill their orders theres no guarentee more will follow The band is all tuned up bring on the fat broad.

  • avatar

    As it finally sinks into Mercedes and BMWs brains, that yes 1-series cars NEED to be front-drive, why do they even bother trying to reinvent the SAAB? And where are Chinese and Russian auto makers looking to make/sell a worldwide recognized brand TODAY?

  • avatar
    John Horner

    There comes a time when even the most loved family pet has had enough and has to be let go of. Enough already, enough.


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