Swedish Automobile N.V. and its child, Saab Automobile, have filed for voluntary reorganization. The process will be self-managed but under the supervision of Swedish law. Over the next three months, Saab will scramble to secure short term funding and finally become stable enough to restart production at their Trollhättan, Sweden plant. The company is confident that they can fix this issue within the first three months, but Swedish courts will allow a time extend to a maximum of 12.
“While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process. The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market,” said Victor Muller, CEO of Swedish Automobile N.V. and Saab.
The two Chinese companies that have already invested into Saab, Pang Da and Youngman, are supportive of the reorganization. Those investments are long term and won’t be received until later, Saab is need of funding to fix their issues now. After weeks of looking and looking, the company was beginning to get into trouble with Swedish debt collectors. On top of that, many blue-collar employees have yet to receive outstanding wages.
“I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but it has been heartening to see that in general, our employees, dealers, suppliers and other stakeholders have stood by us through this tough period. I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile.”
Source: Saab
