GM's beleaguered Swedish brand, Saab, is apparently a hot commodity with industrial firms and investment companies according to report from the Associated Press.
The attorney in charge of the brand's restructuring, Guy Lofalk, says that at least 20 potential suitors have expressed interest in buying Saab and "extensive contacts have occurred with interested parties." Although no names were mentioned in regards to possible buyers, it seems that there is a decent mix of interest both domestically in Sweden and internationally.
Saab entered into bankruptcy protection back in February as a move to prevent the brand from collapsing while GM put it up for sale. The restructuring process is moving forward as creditors have avoided making any legal challenges and the Swedish bankruptcy court has ruled that the brand's bankruptcy protection can be extended until May 20. Over the next several months, Saab will enter into negotiations with creditors in an attempt to write down their non-critical debt of $1.3 billion (USD) by nearly 75 percent.
On the production side, Saab is pinning their hopes on improving efficiency at their plant in Trollhattan. However the reality of the situation demands for increased sales, the company currently estimates that their break even point is about 130,000 cars which is a far cry from the 93,000 vehicles they made in 2008. Thankfully, Saab will introduce three new models (the 9-3X wagon, 9-4X crossover, and a new 9-5) over the next year and a half which should boost production to nearly 150,000 units by 2011.
freeway
April 6, 2009 8:15 PM
