Saab files for bankruptcy

Saab files for bankruptcy

General Motors confirmed yesterday that Saab’s days as a part of the Detroit-based company are coming to an end. The Swedish brand has filed paperwork with courts back in its homeland for a reorganisation that would lead to total independence. This self-managed reorganisation is consistent with the U.S. Chapter 11 bankruptcy process, and would lead to the establishment of an independent entity based in Sweden. In order for that to happen, however, GM needs to line up financing for the new company, which may be difficult. Reports state that as much as $1 billion may be needed to make Saab fully self-sustainable.

GM plans to concentrate Saab’s engineering, design and manufacturing operations back in Sweden. Saab is showing no signs of slowing and is launching three new products between now and mid 2010: the new 9-3X, 9-5 and 9-4X. The first two are already set to be produced in Sweden, but the new 9-4X crossover was scheduled to be built in Mexico alongside the Cadillac SRX. The Swedish government has already rejected a GM request for funds, so the money will have to be sourced from somewhere else.

General Motors confirmed yesterday that Saab’s days as a part of the Detroit-based company are coming to an end. The Swedish brand has filed paperwork with courts back in its homeland for a reorganisation that would lead to total independence. This self-managed reorganisation is consistent with the U.S. Chapter 11 bankruptcy process, and would lead to the establishment of an independent entity based in Sweden. In order for that to happen, however, GM needs to line up financing for the new company, which may be difficult. Reports state that as much as $1 billion may be needed to make Saab fully self-sustainable.

GM plans to concentrate Saab’s engineering, design and manufacturing operations back in Sweden. Saab is showing no signs of slowing and is launching three new products between now and mid 2010: the new 9-3X, 9-5 and 9-4X. The first two are already set to be produced in Sweden, but the new 9-4X crossover was scheduled to be built in Mexico alongside the Cadillac SRX. The Swedish government has already rejected a GM request for funds, so the money will have to be sourced from somewhere else.

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