Today we have some terrible news coming from Sweden where the local automaker SAAB has filed for bankruptcy. This has been confirmed through a statement made by the parent company Swedish Automobile NV (Swan). This decision comes on the same day when the District Court in Vänersborg was scheduled to decide whether to take the carmaker out of reorganization. This was the process that protected the company from its creditors while it was trying to grab the very necessary funds from China.
One of the crucial sticking points in Swan’s attempts to trash out a deal for saving the carmaker involved the former owner of SAAB which was General Motors. GM still has shares in Saab and they provide the technology that the Swedish automaker uses on some of its models. GM was more than reluctant to authorize the investment from Youngman in the carmaker due to the reason that it had issues regarding its intellectual property ending in Chinese hands in the event that SAAB would have been bought by Youngman.
If this application for bankruptcy filed by SAAB will be approved by the court, most likely the company will get a new administrator that will be replacing Guy Lofalk, the person who was in charge during the firm’s reorganization process. SAAB’s employees are still waiting for last month’s salaries while the December ones are imminent.
Swan stated last week that it had obtained significant cash injection from Youngman but they need more money in order to revitalize the carmaker. What will happen to SAAB? We’ll have to wait and see. Hopefully, we’ll be hearing more of the carmaker in the next years but on more positive terms.
Source: SAAB via Auto Express