Monday 19th December 2011

The Saab Saga: It's over

Saab Automobile files for bankruptcy - and there's little hope of reprieve

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Saab Automobile has today filed for bankruptcy, after former owner General Motors refused to permit the company's sale to Chinese investors as it was worried about protecting the technology it still licences to the Swedish car maker.

The company, which first built cars more than 60 years ago, could still be sold as a whole by the bankruptcy administrator, but it is expected that its constituent parts will be broken up and sold piecemeal.

The district court at Vanersborg in Sweden is expected to approve the bankruptcy application - which was handed in personally by Saab CEO Victor Muller - later today.

The bankruptcy is likely to be a heavy blow for Saab's hometown of Trollhattan, where Saab still employs 3700 people in its factory - though it has not produced a vehicle since April, and workers have complained that they haven't been paid since last month.

"After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to complete the reorganisation of Saab could not be concluded," said Saab in a statement.

"The board subsequently decided that the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors."

Follow the full Saab struggle here

[Trusty Steed]

RIP SAAB :-((

[MarJay]

I know that allowing the Chinese access to intellectual property is a bad idea, as they copy everything and it has little protection under the law... But what exactly could GM (of all people) have that is worth so much?

I think this is another example of american corporate protectionism at its worst.

[Graebob]

Sigh.

[Frimley111R]

Great shame but will the company 'do a Rover'? Surely the Chinese can just buy the assets and get going again. That said, GM are witholding all their tech I suppose.

[mgmrw]

Sounds like the yanks don't want anyone to stand a chance of making a go of it.

[nickfrog]

I am surprised that GM has any technology that would of be of any interest to the Chinese. The other way around maybe.

[Fire99]

Very sad for Saab as a company and for the 3000+ employees (and the knock-on for other businesses) A very tough Christmas present.

Not wholly unexpected though. GM, especially with their own not so distant issues, won't be taking any chances. I agree, I wouldn't be surprised to see the Chinese doing a sweep-up operation after the assets are devalued to dust.

[Hellbound]

SAAD

[Fire99]

nickfrog said:

I am surprised that GM has any technology that would of be of any interest to the Chinese. The other way around maybe.

I disagree. The West (Including US) are very good innovators. The Chinese just seem to be able to get the mass-production for cheap money bit right. Chinese Auto-mobiles / Motorcycles, just tend to be copies of the West or Japanese.

[rtz62]

A sad day; I remember the thrill of a family friend taking us out in his brand new 99 turbo, the first one delivered in Nottinghamshire.
I'm sure it will end up in the hands of the Chinese or Indians, no matter what.

[F1GTRUeno]

It's a shame for the employees but not such a big loss in general. I quite like the current 9-3 and 9-5 but they're not exactly world beaters or interesting.

[Skater12]

It's been a long time coming, so to really a shock.
Considering the recent years of new owners, failed take-overs, reduced sales in a struggling economy worldwide, and a very limited vehicle range, I think SAAB did well to make it this far.
Sad to see another individual brand going under, and I hope it's employees find new jobs soon.
Might have to go hunt out a 900 Turbo now :-)

[Dave Hedgehog]

sad for the employees

but they lost there way when they started rebadging vauxhalls, that undefinable element that made a saab a saab just seamed to go

[MarJay]

Fire99 said:

I disagree. The West (Including US) are very good innovators. The Chinese just seem to be able to get the mass-production for cheap money bit right. Chinese Auto-mobiles / Motorcycles, just tend to be copies of the West or Japanese.

The US in general are, just look at companies like Facebook, Google, Intel, Motorola et al.

Cars on the other hand? Nowt special.

[richard300]

Lets face it. GM ruined SAAB years ago.

1990 SAAB 9000 CDE Carlsson:
A car i loved so much, i bought a second identical one.


2000 SAAB 9-3 Aero HOT Convertible:
One of the worse car purchases, and biggest dissapointment against expectation i have ever experiences.... Chassis/torque steer was actually dangerous!!

Edited by richard300 on Monday 19th December 11:09

[mgmrw]

richard300 said:

2000 SAAB 9-3 Aero HOT Convertible:
One of the worse car purchases, and biggest dissapointment against expectation i have ever experiences.... Chassis/torque steer was actually dangerous!!

modulation of the throttle pedal? avoids the dangerous bit then

[Twincam16]

There's far too much expertise at the Trollhatten factry for anyone in their right mind to just pull the plug. I can see the Chinese using it as a way of gaining credibility in European markets (which they're desperate to do right now).

I guess it might mean Chinese cars with Saab noses grafted on, but if they're built and engineered properly, they might just save face in time.

Look at Kia and Hyundai - I remember when Korean cars were a total joke, just badge-engineered cast-offs at bargain prices. But enough people bought them, then they started getting European firms to engineer and design them (Lotus sorted the Kia Soul, for example), and now they're seriously bothering Ford.

[Skater12]

you know you want one !

[Johnboy Mac]

richard300 said:

Lets face it. GM ruined SAAB years ago.

Or, SAAB would have gone bust 20 years sooner without GM.

[Affalterbach]

Doesn't VW want to buy them? They're everything else.