- Saab has less than a week to come up with a survival plan or else enter bankruptcy, the troubled automaker said in a statement on its Web site on Wednesday.
- A court-appointed administrator for Saab has asked a Swedish court to lift bankruptcy protection.
- A court decision on Saab's fate is expected on December 16.
TROLLHATTAN, Sweden — Saab has less than a week to come up with a survival plan or else enter bankruptcy, the troubled automaker said in a statement on its Web site on Wednesday.
A court-appointed administrator for Saab has asked a Swedish court this week to lift bankruptcy protection. The move puts Saab at the mercy of its creditors.
"Saab Automobile and its creditors have approximately five to six days to submit their view to the District Court before the Court takes a final decision about termination of the reorganization," said Saab in a statement. "The management of Saab Automobile will consider future steps and continues the current discussions with (Chinese automaker) Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganization."
A court decision on Saab's fate is expected on December 16.
When asked by Swedish news agency TT whether the latest move meant the end of Saab, CEO Victor Muller said "No, of course not."
Guy Lofalk, the court administrator of the Saab reorganization, told TT that he felt obliged to terminate the bankruptcy protection since Saab "has no money."
The deal to sell Saab to two Chinese firms — Zhejiang-based Youngman Lotus Automobile and Pang Da Automobile Trade — has been blocked by former owner General Motors. GM, which still holds preferred shares in Saab, said it objected to the transfer of intellectual property.
Saab's third-quarter financial report, which was issued last week, quantified its dire situation. The Swedish automaker built just 130 cars and sold only 2,775 cars globally in the third quarter.
Inside Line says: There doesn't appear to be a viable Plan B for Saab at this point.
Add A Comment »
fullchola says:
09:49 AM, 12/09/2011
Hey seansean2,
you are right man!
and let me add;
In fact GM have realized that their crap doesn't work to the point that half of the new vehicle that are finally selling well on their lots now a days aren't their technology but that of Opel....through GM ownership of Vauxhall....
these sob's can thank Opel intellectual property and the US tax payers for their sorry extended life they just gotten....
speedpass says:
08:47 AM, 12/09/2011
GM definitely won out in this situation. Instead of shutting down Saab completely, they sold it for $400 million to Spyker and now they are trying to destroy the brand and bury it. Yet they still have that $400 million. Despite offering better products as of late, I would never buy anything from pompous GM. They are like that arrogant douchebag that you just want to punch.
jscion says:
06:03 PM, 12/08/2011
If Saab wants to survive, then they need to let go of their GM crutch. It doesn't seem that the end to that can be near in site considering the new 9-5 and 9-4X are also GM-based products. I wouldn't be suprised if Saab has plans for their own platforms hidden just waiting for the funding to roll them out.
isend2c says:
01:12 PM, 12/08/2011
This is like the FT-86 from Toyota, just going on and on and on... It was interesting in the beginning and it'll be interesting at the very end, but now it's just annoying.
wikiwiki says:
11:07 AM, 12/08/2011
Just croak already. Sheesh.
tbone85 says:
10:53 AM, 12/08/2011
Silly tribalism tends to birth transparent propaganda. Saab products have seen floundering sales over the last 3 decades. Saab as an independent, as a GM division, and as a Spyker property have all had the same result: they haven't been able to attract enough new customers to maintain relevancy. Blaming GM for all of Saab's problems is exactly like the current administration blaming the previous administration several years into office, it's convenient excuse making pure and simple.
Even a little knowledge of political science yields an understanding that there are no Communist companies. A little common sense also reveals that monopolistic utility companies, banks, farmers, and many other industries and companies also receive massive government aid and/or contracts are also acting outside the traditional guidelines of a free enterprise system. Which of them are Communist fronts? Where are the calls to boycott their products?
What's unpatriotic is to mindlessly repeat party talking points, selectively apply moral or economic principles, and to vilify one's fellow countrymen in pursuit of tribal political points. I encourage everyone to think for themselves instead of mouthing the words of their tribal masters.
nuieve says:
10:17 AM, 12/08/2011
Saab has had about 20 races for survival this year already and won them all.
seansean2 says:
10:14 AM, 12/08/2011
GM ruined Saab. There's no way around this argument. Then decides to cancel the brand but got saved by Spyker. Then finally new cash from China steps in and they go and reject it AGAIN!
The problem is that it was GM's inferior "technology and intellectual property" that ruined Saab to begin with.
GM is a communist entity owned by the federal government. I encourage everyone to boycott GM. Each sale of a GM product is harmful to our free market system.
It is unpatriotic to buy a GM product of any kind.
greedyamerican says:
09:14 AM, 12/08/2011
Intellectual property? Well, take it to grave with you.
pommah says:
07:16 AM, 12/08/2011
GM has intellectual property? Could have fooled me. Biting off their nose to spite their face.