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 :-((