After months of “will-they-won’t-they”, it is finally official: Saab is going bankrupt. All three divisions of the brand, Automobile AB, Tools and Powertrain filed for bankruptcy with the District Court in Vänersborg, Sweden early this morning. A wave of recent bad news from outside companies led Swedish Automobile N.V. to make the decision. Because of it, the automaker’s parent will more than likely separate itself from Saab entirely. According to the official press release, Swedish Automobile N.V. “does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.”
The bankruptcy comes not only after grief received from General Motors but disappointment from Chinese investor Youngman. A proposed buyout by Youngman and another Chinese manufacture, Pang Da, was never accepted by GM, who still held stake in the Swedish brand. After numerous revisions, GM basically said that they would not support any buyout by the Chinese. After that, Youngman informed Saab that the funding originally purposed to continue operations would not be concluded. With their creditors in mind, Swedish Automobile N.V. felt it would be best to file for bankruptcy instead of hunting for more funds.
The final hearing is yet to be final, but Saab is confident that the court will approve the bankruptcy. When that does occur, the appointment of receivers will take place so that Saab Automobile can once again, be for sale.
Source: Saab
