Posted on 02/20/2009 6:08:15 PM PST by Steelfish
February 21, 2009
Saab buys time from creditors as it looks for ways to keep afloat
Managers said the deal marked a 'new chapter in Saab's history'
Christine Buckley and Tom Bawden
Saab, the struggling Swedish carmaker that is being cut loose from General Motors, yesterday won bankruptcy protection from its creditors as it tries to mount a survival plan.
The loss-making division has until early April to devise a plan and creditors must approve any scheme before it goes ahead.
Saab, which is for sale, said it was looking for a partner and/or investors to raise funds. It is also in talks with the Swedish Government but ministers have said that it needs to produce a viability plan.
Swedish reports said GM could pump $400 million (£280 million) into Saab if the Swedish Government guaranteed loans of $590 million. But analysts said that this would not be enough to steer the company back to profitability. Saab made a loss of SKr3 billion (£242 million) last year and expects a similar loss this year.
Saab’s management attempted to put a brave face on. Jan Ake Jonsson, managing director, said: “Today is the beginning of a new chapter in Saab’s history. We are recreating Saab Automobile as an independent unit.” But he conceded: “The road ahead will not be easy.” The carmaker is pinning some of its hopes on the launch of three models this year.
Saab said that its protection from creditors, called a reorganisation in Sweden, would create short-term stability while it attempted to find a long-term solution.
(Excerpt) Read more at business.timesonline.co.uk ...
Read: Saab stave’s off creditors utilizing Sweden’s bankruptcy laws.
Did GM sell it or just walk away ?
How much did GM pay to buy Saab originally ?
Where can you buy a Saab?
Berkeley, Madison, Seattle, and New York City... enough said?
The story should have had a headline “GM car unit files bankruptcy”. That would have gotten the paper a LOT of clicks.
The man who briefly managed SAAB’s 2nd U.S. dealership, Kurt Vonnegut, must be spinning in his grave.
It was the late fifties and he was an obscure starving young author in need of a day job.
The section in his last book: “A Man Without a Country” about his short-lived experience selling the then-aircraft company’s first generation of autos (too lightly built) was probably the only funny piece he ever wrote in his life.
Myself and Mrs. RQSR have enjoyed SAAB cars for over 20 years. Currently have three of them. This is sad news.
Ping to WayneS
I thought about buying one 4 years ago, but chose an Acura instead. Talk about dodging a bullet.
Ten years ago, "Used Saab" was a punch line, trust me. I used to say that "Saab (sob) is the sound a man makes when he owns one".
That was true for my brother, he was forever looking for parts.
Thanks. This is truly a shame. I wish GM had never touched Saab... Ever.
I had a chance to drive the new 9-X Turbo all wheel drive a few weeks ago.
It is an OUTSTANDING car and would be well worth owning at about $30K-$35K. Unfortunately, it’s going to cost $40K-$45K. Oh well.
I’ll stick with buying used ones. I had several of the old-style 900s which went well over 300,000 miles without too much trouble at all. My current 9-5 is at 236K and still going strong. My wife’s “new” style 900 is at about 136,000. It ate a tranny a while back but paid less than half its blue book value for it and knew it had a couple problems so I did not see it as a big deal.
My Spring project will be getting the old 1987 900 Turbo Convertible back on the road. I paid the best price of all for that one. It was FREE. It’s a very strong runner but needs clutch, brakes, and a little body work. Once again, no big deal.
Actually, I DON’T trust you. After all, I don’t even know you.
Warrenton, Virginia.
So, which bankruptcy laws SHOULD they be utilizing?
“Thanks. This is truly a shame. I wish GM had never touched Saab... Ever.”
You’re welcome, and I totally agree with you. “Ever”.
We’ve been running these great cars for over 20 years now.
We hope SAAB will continue somehow.
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