Posted on 02/20/2009 5:17:01 PM PST by SvenMagnussen
STOCKHOLM -(Dow Jones)- Swedish car maker Saab Automobile AB Friday was granted protection from its creditors so that it can be reorganized and said it will seek to separate from its owner, General Motors Corp. (GM).
"We are now recreating Saab Automobile as an independent unit," Saab Chief Executive Jan-Ake Jonsson said in a statement after the Vanersborg District Court in southwestern Sweden approved its request to begin the reorganization process.
Sweden's government maintained its arms-length approach, saying it doesn't plan any support for Saab, though it didn't rule out the possibility of guaranteeing loans that Saab has sought from the European Investment Bank.
Saab said it hopes the court process over three months will transform it into a functioning company that is fully independent from its struggling Detroit- based owner.
The court appointed lawyer Guy Lofalk as administrator. Saab said the reorganization will be spearheaded by Lofalk, Jonsson, and Stephen Taylor, an international reorganization expert.
Saab will present its reorganization plan to creditors within three weeks, it said.
State secretary Joran Hagglund at the Swedish Ministry of Enterprise, Energy and Communication, told Dow Jones Newswires the government wasn't preparing any direct support for Saab.
In May 2005, Iranian immigrant Kirk Kerkorian made a tender offer for GM shares. Shortly after that, credit-rating firms downgraded GM debt.
Saab last year sold fewer than 94,000 cars, down from about 125,000 vehicles in 2007. Its best-ever year was in 2006, when it sold 133,000 cars, making it a tiny player in the global auto industry.
GM, as part of its effort to secure more loans from the U.S. government, had sought five billion Swedish kronor ($572 million) from the Swedish government. Sweden Wednesday rejected that request. GM bought a 50% stake in 1990 and acquired the rest in 2000.
(Excerpt) Read more at money.cnn.com ...
So, what do you think the future holds for Saab?
Saab will become Saab again! They made great cars before GM got in the way! I want a REAL SAAB!
>>>Saab will become Saab again! They made great cars before GM got in the way! I want a REAL SAAB!
I hope Saturn can do the same.
Aren’t Saabs built in Japan now? I had one of the early originals with the 3 cyl 2 cycle engine. great car, easy to repair, you could manually take out the engine without help. It was brutal on head gaskets though. About 5 years ago they were big sellers in New England. A friend of mine had a car lot and would continuously have a few Saabs for sale. I would think that if they are being built in Sweden, they should be of better material and solid.
“I hope Saturn can do the same.”
Unlikely. Saturn is dead unless someone buys it from GM, but I doubt anyone will have time to get everything out of, and off of GM properties before “going out of business” sale.
They could combine SAAB and Volvo and create the Viking Car Company.
The Viking Car Company - We Plunder the Competition
Buy our car or we will rape and pillage your family. I can just see it now, a boxed shaped Volvo with a dragon’s head on the front.
“Buy Volvos. They’re boxy but they’re good.”
A free battleaxe with every purchase.
(I really like the idea about the dragon head. Maybe have one as a hood ornament)
Buy our cars, or we have to make mony the old fashioned way, going a viking!
Before anyone cries racism, I’m half “new Swede” and my second cousin’s husband, who works for Volvo, has a family farm because 1200 years ago his ancestor did go viking and bought land with the booty.
Dream on. I think it will be a miracle if Saab survives. Saturn is dead. But if Saab survives, that will be interesting.
“So, what do you think the future holds for Saab?”
- Changes are slim SAAB ever will rise to Swedish/Worldwide stardom.
The leading engineers at SAAB arn’t businessmen.
IMO they need not to be.
SAAB revolutionized the turbo motor at a time when everyone, even BMW; had given the idea up!.
Okay, here comes a recession,
But SAAB doesn’t know wether.
In a nutshell:
Sweden is a great place to live.
Undeniably, many of us vote for lame politians, but the real problem is the Muslims.
I accept Islam, as long as it doesn’t involve values that don’t belong in an a Western community.
“Buy Volvos. They’re boxy but they’re good.”
- I’m biased (as I live in Swedish Volvo-Land and need only ONE car - namely a decent 200hp Vehicle that reacts in due manner to morning traffic and don’t make excuses for itself.
“Reorganize Independent of GM, dr_who wrote:
Dream on. I think it will be a miracle if Saab survives. Saturn is dead. But if Saab survives, that will be interesting.”
- The folks at SAAB are devoted to innovative technological solutions.
I pray for SAAB out of two reasons:
1. I believe in Western Sweden
2. I sincerely believe SAAB is one of the best cars money can buy.
I drive a 2002 Saab (one of the last that actually looks like a Saab) and love it. Great car, no problems, keeps going strong.
What about eastern Sweden?
I bought my first SAAB (a 900i sedan) in 1991 through the military sales program when I was stationed in Germany. I was hooked.
Since that purchase I have driven a 9000 CDE sedan, another 900i five door, a 9-3 Sports Sedan, and currently own a 2006 9-3 Aero Sports Combi (my favorite all time).
I hope the company is able to be successful. They innovate like no other car company. The class they compete in has numerous quality offerings..so it will be tough.
“Swedish car maker Saab Automobile AB Friday was granted protection from its creditors so that it can be reorganized and said it will seek to separate from its owner, General Motors Corp.”
The implication of this is that the enterprise value of Saab is, at very most, $0.
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