Friday 20th February 2009

Saab Files for Bankruptcy Protection

Is this the beginning of the end for the Swedish carmaker?

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GM has pulled the plug on Saab after months of speculation, leaving the loss-making Swedish car company no option but to file for ‘Chapter 11’-style bankruptcy. The move means a Swedish court-appointed administrator will oversee efforts by Saab to reorganise itself once more into a fully independent entity, while offering short-term legal protection from its creditors.

However the company has reiterated it can only survive as in independent in the future with significant external funding. Last year the company lost nearly £250 million.

'We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganisation would be the best way to create a truly independent entity that is ready for investment,' said Jan Ake Jonsson, Managing Director for Saab Automobile.

'With an all new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs. Reorganisation will give us the time and means that help get these products to market while minimising the liquidity impact of Saab on GM.'

A company press notice issued today puts a brave face on the situation, stating Saab’s intention to re-concentrate the marque’s design, engineering and manufacturing operations in Sweden over a three month period, assuming the administrator agrees to the plans.

Meanwhile the GM decision to cut Saab loose has put the Swedish government under increasing pressure to stump up a taxpayer bailout, which has not yet been ruled out.

[gzylo]

no good I quite like saabs

p.s does it include scania in bankrupcy too

[forzaminardi]

It's a pity as Saab has real potential as a prestigious and sporting brand, but of late their products have been uniformly dull really. GM really royally screwed it up. I hope someone or something can stump up the readies to keep things going on some level as with the right direction Saab could start making some great cars.

[Saabstudent]

Saab and Scania have been separate companies for years now.
That is why the badge no longer has Scania on it.
In fact i think VW heavily invested in the truck brand and now Porsche increased their share of the Wolfsburg firm they have been invited to increase ownership in Scania itself?

Anyway, could be bad news for Saab, could be good in the long run. It is a difficult one to predict, though we can be sure that they will not be the only GM brand to be in so much trouble.

G

[annodomini2]

Well if they survive, maybe we'll get some real saabs and not just rebadged vauxhalls.

Can only be a good thing

[TUS 373]

I had a 9-5 it was great. I had a 9-3, it was the worst car I have ever had (out of 20 something).

I hope that being cut loose from GM will enable Saab to pull its socks up, instead of GM pulling its panys down. They used to build a great car, and perhaps they will again.

[nickpan]

There was never going to be enough room for Volvo and Saab. At least Volvo innovated and have made a decent attempt to revamp their image. Saab never really did this hence chapter 11 in my opinion.

Edited by nickpan on Friday 20th February 13:44

[Andy Zarse]

Bye bye Saab. What a shame you haven't made a vehicle of note for the last fiftenn years.

Off you go to meet Rover in the big car park in the sky.

[2fster]

mickken said:

Reasonably profitable car company, brought by GM, screwed into the ground and flung out....nice.

About the shape of it.

As a man whose Dad drove a 96 and then a 99, I'm very sad to see it go this way. But then £250 million loss last year, no time for sentiment I suppose. And I can't say I've ever owned one either.

Let's hope the Administrators agree their plans.

[HellDiver]

Shame, what will Vauxhall do for the 2.0T in the Insignia now?

[untakenname]

I hope the other saab company will take them on again (they seem to be doing ok), bit unethical though.


[quote]


During changes in company ownership in the 1990s, the company name once again became Saab AB.

Since 1998 the British aerospace company BAE Systems has been the largest shareholder in Saab following its acquisition of a 35% stake from Investor AB by its predecessor, British Aerospace. In January 2005 BAE reduced its shareholding to 20%, which it views as a long term interest. Investor AB also maintains a 20% share. Investor AB hold 38% of the voting rights and is with the other Wallenberg institutions the majority owner.


[/quote]

http://en.wikipedia.org/wiki/Saab

[K321]

Saab will get a buyer. and then finally Saab can do what he wants and return to its successful formula of creating and selling cars that are actually good

[mybrainhurts]

K321 said:

Saab will get a buyer. and then finally Saab can do what he wants and return to its successful formula of creating and selling cars that are actually good

Maybe even a green economy Saab.....

[CTE]

All that any manufacturer needs to do is is to produce good competitive products, with a sensible profit margin, assuming that market capacity is not exceeded by manufacturing capacity. I bet that whilst all the problems are blamed on the lack of credit, the reality is that the product is not good enough, whence the failure, while the lack of credit availability just compounds the problems.
Pity for the workforce that they were managed by accountants and shareholders...would you invest in a car maker nowdays, unless they had some really excellent innovation to beat conjestion, fuel shortages, enviromental issues etc etc, oh yes, and keep us lot happy?

[mark3man]

nickpan said:

There was never going to be enough room for Volvo and Saab. At least Volvo innovated and have made a decent attempt to revamp their image. Saab never really did this hence chapter 11 in my opinion.

Edited by nickpan on Friday 20th February 13:44

SAAB were never really allowed to innovate - just use a GM platform to make something a bit quirky and at a higher price.
Volvo, remember, has been reliant on Ford components and has also shifted some production out of Sweden.
I used to have SAABs for years and loved that slightly different feel but sadly, they have not been different enough in recent times.

[Nickellarse]

The 9000 HPT that I owned was brilliant. Total rocket ship and bomb proof. My old man had a 95 and it was utter rubbish. Shame to lose the marque but market forces rule the world. If you ain't shifting units you is screwed.

[chazwozza]

Damn fat, lazy, useless, boring and blind Americans. And yet they have asked for another bailout. I say let the big boys go under and then variety may just come back to our motoring lives.

[ScoobieWRX]

If they price Saab at £1 it might be worth a PH collective whipround to buy them

We'll be millionaires Rodney!!

edited to add: I forgot to say...... TATA Saab!! ....well you never know

Edited by ScoobieWRX on Friday 20th February 14:58

[team will]

chazwozza said:

Damn fat, lazy, useless, boring and blind Americans. And yet they have asked for another bailout. I say let the big boys go under and then variety may just come back to our motoring lives.

Damn right!!!

Bring the next generation and lets have some innovation and excitement!

[LewisR]

Just goes to show how pathetic and useless GM top management are. Look at what Ford have done with Volvo and compare against this. That said, Ford did stick the X-Type on a Mondeo platform, that failed. GM stuck the (NG) 900 on a Vectra platform and that failed too. They don't realise that going cheap isn't cheap. Stupid bean counters & management.

[Fire99]

I think it's too easy to slate GM for sharing platforms. It's common practice among most of the big players.

Fiat 500 / Ford Ka
Jaguar X-Type / Ford Mondeo
Volvo C30 / Ford Focus
Mazda 2 / Ford Fiesta

The list goes on..

Jaguar drained Ford's resources and i'm not saying Jaguar is a bad product and as such i'd say there are a host of reasons for Saab's issues.
I've a real soft spot for Saab and whatever the outcome i hope it doesn't sink. We need some variety in the motoring mainstream.