Saab files for bankruptcy
12-19-11, 09:29 AM
#1
Saab files for bankruptcy
http://www.cbc.ca/news/world/story/2...ankruptcy.html
Saab files for bankruptcy
Swedish carmaker's Chinese investors fail to take over former GM company
The Associated Press Posted: Dec 19, 2011 6:49 AM ET Last Updated: Dec 19, 2011 9:18 AM ET Read 41 comments41
Saab Automobile filed for bankruptcy Monday after attempts by Chinese investors to take over the loss-making brand were blocked by previous owner General Motors Co.
Saab CEO Victor Muller personally handed in the bankruptcy application to a court in southwestern Sweden, ending his two-year struggle to revive the more than six-decades-old car maker, known for its rounded sedans and quirky design features.
The Vanersborg District Court was expected to approve the application later Monday.
While experts say the company is likely to be chopped up and sold in parts, local officials in the town of Trollhattan, where Saab employs more than 3,000 people, were holding out hope that a new buyer would emerge to salvage the brand.
"Our absolute hope is that the bankruptcy administrator will aim for a solution where the company is sold in its entirety," Trollhattan Mayor Paul Akerlund said in a statement.
Muller, a Dutchman, used his luxury sports car maker Spyker Cars to buy Saab from GM in 2010, promising to restore its Swedish identity, but the company ran out of money just a year later.
Even as production stopped and salary payments were delayed, Muller fended off bankruptcy by selling the company's real estate and lining up financing deals with investors in Russia and China. He bought time by placing the company in a reorganization process under bankruptcy protection.
But the deals fell through, blocked by regulators or by GM, which still owns some technology licences for Saab. The U.S. automaker was concerned that its technology would end up in the hands of Chinese competitors.
The final Chinese suitor, Zhejiang Youngman Lotus Automobile Co., pulled out after the last proposal for a solution was rejected by GM over the weekend, according to Saab owner Swedish Automobile, Muller's company which was formerly known as Spyker Cars.
Originally an aircraft maker, Saab entered into the auto market after Second World War with the first production of the two-stroke-engine Saab 92. It soon became a household name in Sweden and in the 1970's it released its first turbocharged model - the landmark Saab 99.
To auto enthusiasts, Saab was known for its quirks such as placing the ignition lock between the front seats and becoming the first car to have heated seating in 1971.
Saab files for bankruptcy
Swedish carmaker's Chinese investors fail to take over former GM company
The Associated Press Posted: Dec 19, 2011 6:49 AM ET Last Updated: Dec 19, 2011 9:18 AM ET Read 41 comments41
Saab Automobile filed for bankruptcy Monday after attempts by Chinese investors to take over the loss-making brand were blocked by previous owner General Motors Co.
Saab CEO Victor Muller personally handed in the bankruptcy application to a court in southwestern Sweden, ending his two-year struggle to revive the more than six-decades-old car maker, known for its rounded sedans and quirky design features.
The Vanersborg District Court was expected to approve the application later Monday.
While experts say the company is likely to be chopped up and sold in parts, local officials in the town of Trollhattan, where Saab employs more than 3,000 people, were holding out hope that a new buyer would emerge to salvage the brand.
"Our absolute hope is that the bankruptcy administrator will aim for a solution where the company is sold in its entirety," Trollhattan Mayor Paul Akerlund said in a statement.
Muller, a Dutchman, used his luxury sports car maker Spyker Cars to buy Saab from GM in 2010, promising to restore its Swedish identity, but the company ran out of money just a year later.
Even as production stopped and salary payments were delayed, Muller fended off bankruptcy by selling the company's real estate and lining up financing deals with investors in Russia and China. He bought time by placing the company in a reorganization process under bankruptcy protection.
But the deals fell through, blocked by regulators or by GM, which still owns some technology licences for Saab. The U.S. automaker was concerned that its technology would end up in the hands of Chinese competitors.
The final Chinese suitor, Zhejiang Youngman Lotus Automobile Co., pulled out after the last proposal for a solution was rejected by GM over the weekend, according to Saab owner Swedish Automobile, Muller's company which was formerly known as Spyker Cars.
Originally an aircraft maker, Saab entered into the auto market after Second World War with the first production of the two-stroke-engine Saab 92. It soon became a household name in Sweden and in the 1970's it released its first turbocharged model - the landmark Saab 99.
To auto enthusiasts, Saab was known for its quirks such as placing the ignition lock between the front seats and becoming the first car to have heated seating in 1971.
12-20-11, 12:08 PM
#5
This company has been making crap cars for years. Trying to compete with BMW using front wheel drive rebadged Opals.
It's sad people will lose their jobs, but amazing they kept their jobs for so long.
They just announced that Saab is ceasing warranty coverage. Those brand-new 9-5s on the dealer lots have no warranty any more.
It's sad people will lose their jobs, but amazing they kept their jobs for so long.
They just announced that Saab is ceasing warranty coverage. Those brand-new 9-5s on the dealer lots have no warranty any more.
12-20-11, 12:10 PM
#6
This company has been making crap cars for years. Trying to compete with BMW using front wheel drive rebadged Opals.
It's sad people will lose their jobs, but amazing they kept their jobs for so long.
They just announced that Saab is ceasing warranty coverage. Those brand-new 9-5s on the dealer lots have no warranty any more.
It's sad people will lose their jobs, but amazing they kept their jobs for so long.
They just announced that Saab is ceasing warranty coverage. Those brand-new 9-5s on the dealer lots have no warranty any more.
Resale value just got much worse.
Sad.
12-20-11, 12:20 PM
#7
This just sucks i really love saab cars since i had one =9000 model. and i really loved and was hoping to purchase one in near future. i just hope saab stays alive and some good investor buys it and keeps it alive!!!
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12-20-11, 12:49 PM
#9
12-20-11, 12:53 PM
#10
Lexus Fanatic
12-20-11, 01:00 PM
#11
Lexus Fanatic
No, it wasn't inevitable. GM didn't have to cause Saab's demise, any more than Saturn's. But GM, when they took over, simply turned a blind eye to what Saab did best.....quirky FWD Swedish-designed hatchbacks that had relatively few but very loyal followers. They also turned a blind eye (after 2000) to what Saturn did best....small plastic-body cars with unique design features, simple pricing/deals, and excellent customer-service.
12-20-11, 03:56 PM
#12
No, it wasn't inevitable. GM didn't have to cause Saab's demise, any more than Saturn's. But GM, when they took over, simply turned a blind eye to what Saab did best.....quirky FWD Swedish-designed hatchbacks that had relatively few but very loyal followers. They also turned a blind eye (after 2000) to what Saturn did best....small plastic-body cars with unique design features, simple pricing/deals, and excellent customer-service.
That car was nice, but it was very poor compared with BMW, Mercedes or Jag, and even poor compared with Audi (which was also facing tough times at that time). Lexus launched the LS400 a couple of years later, and I knew even as a 13 year old that companies like Saab were doomed at that point.
Quirky is not a market which has enough scale. People were buying Saabs because it was the cheap option for buying a luxury car. More premium than a Vauxhall Carlton, but not as expensive as a BMW or Mercedes. When Lexus arrived, Lexus offered that value oriented price point for a luxury car, but with quality that exceeded the Germans. That was the end for mid-price European luxury marques.
12-20-11, 05:27 PM
#15