Saab files for reorganisation under Swedish law

GM will be spinning off Saab as an independent business as of January 1st 2010

By Alex Ricciuti
February 20, 2009 3:41 PM
Filed Under: American, Corporate/Financial, European, General Motors, Saab

On Friday, Saab announced it is filing for a 'reorganization' under Swedish law which will provide the troubled automaker with legal protection from creditors as it attempts a restructuring.

That means GM will be spinning off Saab, leaving the loss-making Swedish car maker to fend for itself. According to a restructuring plan GM submitted to the US Treasury this week as a condition of the government loans it has received, Saab will become an independent business on January 1st, 2010.

"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," said Jan-Ake Jonsson, Saab's Managing Director, in a statement quoted by Reuters.

Filing for reorganization is different from an outright bankruptcy under Swedish law and Saab is still looking for investors or new ownership in order to keep the brand in business.

GM began buying into Saab in 1989 and later became its full owner. The Swedish brand has never made a profit and analysts believe Saab will need several billion dollars in order to turn its fortunes around.

Source: Reuters via Yahoo News

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Tags: GM bailout, bankruptcy, Saab

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Comments

rcw

February 20, 2009 4:28 PM

I have always loved Saab cars as long as I could remember, particularly the pre-GM models. However, it is important to recognize that unfortunately Saab truly never has made a profit just as the article said. I remember reading this years before the GM acquisition. Even though GM probably didn't help Saab, in all fairness they probably can't be fully blamed either seeing that Saab didn't do well in the approximately 50 years before them. It's sad to think that they wouldn't have been here this long if someone else had not purchased them.

Fer

February 20, 2009 4:32 PM

It´s glad to see this kind of things. I drove a Saab 93 TiD last summer for three days and found it really good. I hope the swedish fight for continue bringing us these great cars.

tootall

February 20, 2009 5:34 PM

Sweedish again! Oh how good that sounds! I think that once GM dose sell Sabb, People like Cristian Koenigsegg, along with the Sweedish goverment should take control of the brand and make an attempt to build it up (just a thought).

jon_leong

February 20, 2009 5:34 PM

Come on asians, do the right thing... invest your money in Saab and make it independent. Just like TATA to Jaguar and SAIC to MG/Rover(roewe)... heng on... bad example... any way ... I promise I would be the first one to buy it!

alessandro

February 20, 2009 6:11 PM

GM is a screw up so others pay for it. Marvelous way to divide duties. Poor Saab, your cars and whole line up ideology like dump too after that deing overseas.

dcars62

February 21, 2009 2:07 AM

Saab was junk before GM bought them and invested billions with nothing to show for it. They should dump Opel next and get rid of the traitors.

sub39h

February 21, 2009 1:08 PM

are you completely insane? Opel is probably one of the branches of GM that is still capable of making a profit. need i remind you that several Opel models have been badge engineered in the past and sold under Saturn, Cadillac and Pontiac.

GM has it's American manufacturing arm to blame for it's current crop of losses. SAAB has the potential to do quite well, with the 9-3 being a very common car in the UK and the 9-3 convertible being one of the best selling. dumping the brand is economic suicide in my opinion. they should be using their expertise in building small cars to bring new models to the USA.

BabyMilo

February 21, 2009 6:26 AM

good, i love SAAB i think that they are great cars. Maybe abit dated but still great cars im happy to see that we arent going to lose them. If we are lucky they will do better by themselves than what they did with GM

dcars62

February 21, 2009 3:03 PM

A house divided can not stand and the opel division has abandoned GM. Move all the equipment to england and close all the opel factories in germany.

freeway

February 21, 2009 6:09 PM

or better: close all Vauxhall factories in england and move all the equipment in Germany... oh, pardon me... germans don't need the english equipment... :D

freeway

February 21, 2009 6:16 PM

and speaking about SAAB... I like these cars, but why don't they try to evolve in their design? like some other producers that kept their most important design cues that made their identity but moved on... the SAAB never made a big step forward and maybe this thing "helped" them to find themselves in this delicate situation, their cars looking almost like they did 20 years ago. (considering design not the technology involved)

dcars62

February 21, 2009 6:33 PM

I'm sure the english or the french would want the jobs, obviously the germans don't.

Aluraeo

February 22, 2009 5:35 PM

GM really did Saab in this time. They never paid any attention to saab at all or did they allow Saab funds to grow. I've driven Saabs before and thought they werent the best of cars they were characterful and lovely to drive. If saab goes, it will be a real pity.

alessandro

February 22, 2009 5:40 PM

I'm not sure about germans in this situation the economy is today. But Saab like Citroen, Volvo, Opel and even such like Alfa Romeo by the way, should better look after their patrimony and design culture, more or less look for the independence so. Othervise their existence in future could lead to the loss of any attraction which leads to the end of entire brand.

Moko

February 24, 2009 12:59 AM

damn,damn damn,hoepfully being outta the hands of GM will create more exciting designs and programs to follow cuz that company has certainly the history,pre-1989 that is

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