Saab Declares Bankruptcy
Today, the Supervisory Board of Saab decided to declare bankruptcy, Automobilwoche [sub] writes. The 4000 employees of Saab are being informed at a meeting how the company will continue. The company is now under the supervision of an insolvency administrator. Since Sweden’s government had turned down bailout requests of the mother ship GM, according to Swedish media, one possible solution would be a merger of Saab with a spun-off Opel.
[Here’s a link to the document filed today at the court. The English version starts on page 7 of the pdf.]
Reuters reports that Saab made a loss of about 3 billion Swedish crowns ($340.1 million) in 2008, according to documents filed by the company with a Swedish court. It expects a similar loss this year. “We explored and will continue to explore all available options for funding and/or selling Saab, and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment,” Saab Managing Director Jan-Åke Jonsson said in a statement.
In its court filing, Saab said GM has said it “would not fund further the projected losses of the company (Saab),” but would provide liquidity for the company to pursue a reorganization.
Swedish daily Dagens Industri said on Friday that Saab parent GM is prepared to pump in US$400 million to help make its Saab car unit profitable if the Swedish state guarantees a further loan of US$590 million to Saab.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
@Viceroy_Fizzlebottom: Bertle is hardcore. Click this link, and look for Typhoon under Vee Lite.
This is the only bright spot in the whole mess. Saab used to be a very cool niche company until they got crappified by GM. I would love to see them independant again, or maybe teamed up with Opel. They should work a deal with the Saturn distribution network to stay in the US. I think the no-hassle dealer experience would really appeal to the type of people who used to buy Saabs, and probably would buy them again if they weren't GM step-children. Hell, Saturn should tell GM to go pound sand and split NOW, not in 2012!
According to the Gospel of Wikipedia, this is Saab's way of trying to get out of GM's stranglehold.
If Sweden doesn't care if Saab dies, why should America? There is terrific global overcapacity in car production, and Saab is a "damaged brand." (At least for the relatively few who know what a Saab is or was.) Sweden is a wealthy nation with cradle-to-grave welfare. Punitive taxes further level the living standards of the working and non-working. The Saab employees won't be badly hurt by losing their present jobs. It is time for Saab to join Packard, Kaiser, DeSoto and thousands of other extinct marques in automotive Valhalla. The real question is this: how can GM let Saab die without incurring staggering liabilities owed to former dealers?