Today it was announced Saab has filed for bankruptcy in Sweden. Despite finding a potential investor in China, General Motors, who provides technical support for Saab, refused to allow the deal to happen. This was the final nail for the auto maker who stopped production of new vehicles this past April due to lack of funding. Until today, Saab was optimistic it could find the necessary funds to continue, but todays statement is grim, and is likely the end for Saab.
Here is today’s press release:
Zeewolde, The Netherlands, 19 December 2011 — Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning.
After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.
Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.
It is such a shame that Saab will not be allowed to continue making its cars. Damn you General Motors for forgetting that just a few years ago you yourself were bankrupt, and relied on the American tax payers to save your ass. This was your chance to do something for the auto industry. There were a variety of ways General Motors could have helped Saab and kept its technology from finding its way into other cars in China, but they refused to negotiate. I have lost what little respect I had left for General Motors.