Saab is officially bankrupt, Parent company Swedish Automobile announced today. The company has been in trouble since April, when it ran out of cash, couldn’t pay its suppliers and had to stop building cars. However, after eight months of negotiations it looked as if Saab was going to be saved after a sale was agreed with Chinese manufacturer Youngman and distributor Pang Da. Unfortunately that very deal fell through, triggering the bankruptcy. The deal was primarily called off due to General Motor’s refusal to have their designs and technology used by the Chinese. General Motors spokesman Jim Cain told Automotive News that Saab had not been able to reassure GM that its technology would be safe in the sale to the Chinese.
A brief explanation: General Motors once owned Saab, but put it up for sale in 2009 when GM itself was in financial trouble. By that time Saab had designed the new 9-5 and 9-4X using mostly GM parts in their underbodies, suspensions, powertrains, and electronics. Then In early 2010, Saab was bought from GM by Victor Muller’s investment company, which also owned tiny supercar maker Spyker. However, when Muller agreed upon the sale to the Chinese, GM then decided it wouldn’t let its designs go to China. GM believe that copyright protection is too weak in China and its technology would be pirated. This poses a huge threat to GM as they manufacturer other cars using the same systems – the Insignia, Astra, new Zafira and their US and Chinese equivalents.
With bankruptcy, Muller has said he won’t get any money out of Saab. Creditors will scrap over the remaining value left from the company’s tools, equipment and premises and they won’t get much nor will its workers.
Read the official Statement below:
‘Zeewolde, The Netherlands, 19 December 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning.
‘After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
‘Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.’
source: Top Gear, Car Magazine
