Saab files for bankruptcy

Struggling Swedish manufacturer, Saab, has finally filed for bankruptcy. What may well prove to be the closing chapter in this ongoing saga could see the iconic brand laid to rest following months of uncertainty.

A statement by parent company, Swedish Automobile NV (Swan) announced that: ‘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.’

The demise of Saab follows former owner GM’s reluctance for the ailing brand to be sold to Chinese manufacturer Youngman, because of issues of the transfer of intellectual property rights. General Motors held a 50 per cent share of Saab-Scania from 1990, before its full acquisition of the brand a decade later.

Another decade later, at the height of the global economic meltdown, Saab was sold to Dutch company Spyker Cars, with Victor Muller becoming chairman. 2011 has seen the brand struggling constantly for ‘short and medium term funding’, with production lines halted numerous times and wages going unpaid. Saab entered reorganization in September this year, with bankruptcy finally being filed on 19 December.

It essentially signals the end of car production in its historic form (but perhaps not the end of the brand?) after an illustrious past and a very turbulent and unpleasant final year.

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By John O'Brien