Saab Files for Bankrupcy in Sweden
09-09-11, 09:41 PM
#1
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Thread Starter
Saab Files for Bankrupcy in Sweden
We all knew that Saab, and their Spyker owners, have been in a weak financial position for some time now, so this probably doesn't come as much of a surprise. Like the bankrupcy-reorganization of GM (Saab's former owner) and Chrysler, it does not necessarily mean that the company is actually going under, just filing for, what in Sweden, is their equivalent of our buisness Chapter-11 laws, which protect them from their creditors until (and if) the company can reorganize and get new financing.
A new 9-5 has been under development, and was expected to debut in the near future. We'll have to wait and see if or how it will be affected.
Here's the article, and the details:
http://content.usatoday.com/communit...s-last-stand/1
Saab Automobile filed for a court-supervised reorganization today to fend off being forced into bankruptcy by unpaid suppliers and workers.
The storied brand has been virtually shut down since April and didn't pay its 3,700 employers their August wages last week. Owner Swedish Automobile, formerly Spyker Cars, said the company applied in Sweden for reorganization -- similar to a Chapter 11 filing in the U.S. -- the Associated Press reported.
If the court and its creditors approve, Saab would get at least a 90-day reprieve from debt collectors while the court oversees reorganization. But the process can be extended up to a year, and the company also said in its filing that it could not rule out eventual bankruptcy, reported Reuters. A decision by the court is due Thursday.
"We are not dead yet," SA and Saab CEO Victor Muller said at a press conference today.
SaabUSA posted a notice for customers about the filing on its web site today. It noted that SaabUSA and Saab Parts are not part of the filing and said that customers will continue to receive expected services.
Netherlands-based SA took over Saab from General Motors in 2010 but the brand has twisted in the wind since as it has tried to gain financial stability and produce a new lineup of models. GM retains a stake in the company and builds the 9-4X crossover, a Cadillac SRX-sibling that went on sale this summer, for Saab in Mexico. Start of production for the 2012 9-4X also now is up in the air.
Saab's main plant in Trollhattan, Sweden, has been virtually shut down since April because Saab had no money to pay for parts. Muller told Reuters that Saab owes $210 million to suppliers and that the goal is full payment.
Saab also was late with paychecks in June and July and then missed the August pay last week. Under Swedish wage guarantee laws, the workers can can seek their pay from the government.
Saab is awaiting long-term financing in exchange for majority control in deals made in June with Chinese companies Zhejiang Youngman Lotus and Pang Da to make and sell cars in China.
But Chinese officials have yet to OK the deals, and published reports today indicate approval may not be coming:
Muller said he was sure the Chinese deals would come through, but, according to Reuters, Swedish newspaper Dagens Industri has been told by experts that China is unlikely to approve Youngman.
Dagens Industri said state-owned Beijing Automotive Industry Holdings Co. (BAIC) -- which bought the technology and tooling for Saab's previous models from GM as it headed for bankruptcy court -- or SUV maker Great Wall Motor, were seen by Chinese officials as better partners, according to Reuters.
Saab said it will present a restructuring plan within three weeks. "Obviously a restructuring is preferable to bankruptcy. But receivership is still a step closer to bankruptcy. We've always warned investors it was extremely risky," Jan Maarten Slagter, director of Dutch shareholders' association VEB told Reuters.
The Swedish National Debt Office, which guaranteed a loan from the European Investment Bank to Saab in the purchase from GM, supports a reconstruction, the AP reported.
At the press conference, Muller expressed bitterness that Russian investor Vladimir Antonov was earlier this year stopped by the European Investment Bank, GM and others, from investing in Saab.
"He was willing to put in 100 million euros in this company at a time when 30 million euros would have been adequate," he said. "For us, it is extraordinarily frustrating, and he is very upset as a potential investor."
A new 9-5 has been under development, and was expected to debut in the near future. We'll have to wait and see if or how it will be affected.
Here's the article, and the details:
http://content.usatoday.com/communit...s-last-stand/1
Saab Automobile filed for a court-supervised reorganization today to fend off being forced into bankruptcy by unpaid suppliers and workers.
The storied brand has been virtually shut down since April and didn't pay its 3,700 employers their August wages last week. Owner Swedish Automobile, formerly Spyker Cars, said the company applied in Sweden for reorganization -- similar to a Chapter 11 filing in the U.S. -- the Associated Press reported.
If the court and its creditors approve, Saab would get at least a 90-day reprieve from debt collectors while the court oversees reorganization. But the process can be extended up to a year, and the company also said in its filing that it could not rule out eventual bankruptcy, reported Reuters. A decision by the court is due Thursday.
"We are not dead yet," SA and Saab CEO Victor Muller said at a press conference today.
SaabUSA posted a notice for customers about the filing on its web site today. It noted that SaabUSA and Saab Parts are not part of the filing and said that customers will continue to receive expected services.
Netherlands-based SA took over Saab from General Motors in 2010 but the brand has twisted in the wind since as it has tried to gain financial stability and produce a new lineup of models. GM retains a stake in the company and builds the 9-4X crossover, a Cadillac SRX-sibling that went on sale this summer, for Saab in Mexico. Start of production for the 2012 9-4X also now is up in the air.
Saab's main plant in Trollhattan, Sweden, has been virtually shut down since April because Saab had no money to pay for parts. Muller told Reuters that Saab owes $210 million to suppliers and that the goal is full payment.
Saab also was late with paychecks in June and July and then missed the August pay last week. Under Swedish wage guarantee laws, the workers can can seek their pay from the government.
Saab is awaiting long-term financing in exchange for majority control in deals made in June with Chinese companies Zhejiang Youngman Lotus and Pang Da to make and sell cars in China.
But Chinese officials have yet to OK the deals, and published reports today indicate approval may not be coming:
Muller said he was sure the Chinese deals would come through, but, according to Reuters, Swedish newspaper Dagens Industri has been told by experts that China is unlikely to approve Youngman.
Dagens Industri said state-owned Beijing Automotive Industry Holdings Co. (BAIC) -- which bought the technology and tooling for Saab's previous models from GM as it headed for bankruptcy court -- or SUV maker Great Wall Motor, were seen by Chinese officials as better partners, according to Reuters.
Saab said it will present a restructuring plan within three weeks. "Obviously a restructuring is preferable to bankruptcy. But receivership is still a step closer to bankruptcy. We've always warned investors it was extremely risky," Jan Maarten Slagter, director of Dutch shareholders' association VEB told Reuters.
The Swedish National Debt Office, which guaranteed a loan from the European Investment Bank to Saab in the purchase from GM, supports a reconstruction, the AP reported.
At the press conference, Muller expressed bitterness that Russian investor Vladimir Antonov was earlier this year stopped by the European Investment Bank, GM and others, from investing in Saab.
"He was willing to put in 100 million euros in this company at a time when 30 million euros would have been adequate," he said. "For us, it is extraordinarily frustrating, and he is very upset as a potential investor."
Last edited by mmarshall; 09-09-11 at 09:47 PM.
09-09-11, 10:16 PM
#4
Lexus Fanatic
Thread Starter
Unlike Saturn, though, which is probably gone for good (no one has yet offerd to buy it), Saab may still (?), with some luck and new financing/reorganization, still have some lease on life.
Last edited by mmarshall; 09-10-11 at 09:19 AM.
09-09-11, 10:20 PM
#5
GM, before they sold the division off to Spyker, did more of less the same thing to Saab that it did to ruin Saturn....forced them to offer GM and Opel-platform clones under the Saab name, instead of allowing either Saab or Saturn to design and sell their own unique products like they had previously. It was, sadly, the ruin of both companies.
Unlike Saturn, though, which is probably gone for good (no one has yet offerd to buy it), Saab may still (?), with some luck and new financing/reorganization, still have some lease on life.
Unlike Saturn, though, which is probably gone for good (no one has yet offerd to buy it), Saab may still (?), with some luck and new financing/reorganization, still have some lease on life.
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09-10-11, 06:54 AM
#8
Lexus Fanatic
iTrader: (20)
just another saab story... lol
09-10-11, 09:24 AM
#9
Lexus Fanatic
Thread Starter
Well, bankrupcy-reorganizaton (better-known in the U.S. as Chapter 11) is not necessarily death. The company, more or less, does not die, but goes to sleep for awhile, and is protected from creditors until it becomes a practicing buisness again. of course, However, I admit that it is a complex process, I am not a buisness-lawyer, and I don't know all of the legal details.
09-10-11, 09:26 AM
#10
Lexus Fanatic
Thread Starter
09-10-11, 09:30 AM
#11
Lexus Fanatic
Thread Starter
Many years ago, in the U.S., Saabs had front-drive before most other brands did, and thus were chosen by some of those in bad-weather areas as more upscale alternatives to Subarus (which had FWD before getting AWD).
Last edited by mmarshall; 09-10-11 at 09:33 AM.
09-10-11, 01:23 PM
#12
Depends on if you believe the old stereotypes (which I generally don't). Saabs once were described in the auto press as cars for Lesbians, environmentalists, librarians, and the safety-conscious. The declining sales show that that was either not the case or is no longer the case.
Many years ago, in the U.S., Saabs had front-drive before most other brands did, and thus were chosen by some of those in bad-weather areas as more upscale alternatives to Subarus (which had FWD before getting AWD).
Many years ago, in the U.S., Saabs had front-drive before most other brands did, and thus were chosen by some of those in bad-weather areas as more upscale alternatives to Subarus (which had FWD before getting AWD).
The Saab today has nothing to offer.It's dead.
09-10-11, 06:26 PM
#13
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Saabs were very popular in the Northeast. There was a Wall Street Journal article back in 1988 which mentioned that 40% of all Saabs were registered in NY/NJ/CT. Even today, Saabs are still a common sight in CT. Not surprisingly, the biggest Saab dealer in the U.S. is located there.
