Saab files for bankruptcy in Swedish courts, wants $1B
by Sam Abuelsamid on Feb 20th 2009 at 8:33AM 
General Motors confirmed this morning that Saab's days as a part of the Detroit-based company are numbered. The Swedish brand has filed paperwork with courts in its home country for reorganization that would lead to its independence. This self-managed reorganization is analogous to 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 problematic. Automotive News reports that as much as $1 billion may be needed to make Saab sustainable on its own. GM plans to concentrate Saab's engineering, design and manufacturing operations back in Sweden. The brand plans to launch 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 come from somewhere else. The official press release from GM can be read after the jump.
[Source: General Motors]
PRESS RELEASE
SAAB ON THE ROAD TO INDEPENDENCE
- Swedish court process to reorganise Saab into a fully independent business
- Three new models ready to be launched over the next year and a half
- Saab aims to bring resources back to Sweden
- Funding sought for 'new independent Saab'
Trollhättan. As a result of GM's strategic review of the global Saab business the Saab Board announced today that it will file for reorganisation under a self-managed Swedish court process to create a fully independent business entity that would be sustainable and suitable for investment.
The reorganisation is a self-managed, Swedish legal process headed by an independent administrator appointed by the court who will work closely with the Saab management team. As part of the process, Saab will formulate its proposal for reorganisation, which will include the concentration of design, engineering and manufacturing in Sweden. This proposal will be presented to creditors within three weeks of the filing. Pending court approval, the reorganisation will be executed over a three-month period and will require independent funding to succeed.
"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganisation would be the best way to create a truly independent entity that is ready for investment," said Jan Ake Jonsson, Managing Director for Saab Automobile. "With an all new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs. Reorganisation will give us the time and means that help get these products to market while minimising the liquidity impact of Saab on GM."
Funding for the restructured company will need to be secured during the reorganisation process and will be sought from both public and private sources.
Saab will continue to operate as usual and in accordance with the formal reorganisation process, with the Government providing some support during this period. The reorganisation should have no impact on other GM operations. Details of the progress will be provided as milestones are achieved.
Reader Comments (Page 1 of 4)
AirRaid 8:40AM (2/20/2009)
First of many, who's gonna be able to fix this?
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Sea Urchin 8:45AM (2/20/2009)
Bob Lutz
Epyx 9:43AM (2/20/2009)
Ok - So if Saab goes independent must they then also leave the US? Considering they no longer have an independent dealer base that I know of. Are not all Saabs sold at existing GM dealers? Maybe I am wrong on this, just don't remember seeing a stand alone dealer for a long time.
If it is true Saab would no longer have a dealer network maybe they could join forces with Saturn to leverage a dealer network. I doubt that would work but who knows. Saab has a similar problem to Saturn, too ingrained with GM and no independent product but at least Saab could stand alone with design, engineering and manufacturing facilities.
Its not all GMs fault. Saab was going down before GM purchased them. Maybe another parent company would have proven better results but Saab was in trouble before. They have only made two models forever. The stupid 9-7x and 9-2x were bad ideas with a good intent - increase the brand presence.
The biggest mistake GM made was making Saab less weird and less Saab. Losing the 900 as a hatch was a major mistake. That is akin to Porsche redesigning the 911 to something unfamiliar. Also parts bin parts are not a good thing, no matter how good they are. Honestly, by all accounts the products GM made with Saab are very good but they have less Saab soul. I believe the 9-3 sedan is a markedly better car in all tangible ways to the 900 or 9-3 hatch but it is far less cool and far less a Saab. Same thing to some extent happened to Volvo just not to the same degree but also Volvo was not in the same dire straits as Saab was when it was purchased.
TigerMil 11:35AM (2/20/2009)
VOB Saab is a standalone Saab dealer in Rockville, MD.
Actually they are Nissan/Saab but the Nissan showroom and Saab showroom are about three blocks apart. The Saab parts and Nissan parts coexist in the Nissan showroom building.
These jokers still have a bad taste for me when they wouldn't let me test drive a 300ZX twin turbo back in the day. They were charging 10K over MSRP...probably got it too.
Sea Urchin 8:45AM (2/20/2009)
Shame, a real shame. Why, oh why all the import groupies refused to buy that Chevy Trail Blazer (9-7X) rebadge, after all it had a key in the center, like all true Saabs.
Great work Rick and Bob, but hey at least you guys got your millions.
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Coolio 10:20AM (2/20/2009)
Well said !
I felt sorry for the (one or two) buyers who overpaid, and felt holier-than-the-rest-of-us about themselves, for being fooled into buy the great new "Saab" SUV.
Also for the Saab badged Subarus...
Nicolas 9:09AM (2/20/2009)
What about the 9-2x? A sweet sweet WRX wagon with meatballs!
Will 10:45PM (2/20/2009)
The 9-2X was brilliant if you took it for what it was: a better-looking, more comfortable WRX wagon. My dad has an '05 and loves it... but he's a longtime Subaru owner who knew exactly what he was buying.
robert bell 8:51AM (2/20/2009)
was that a first shoe I heard dropping?
memo to Gettlefinger: get ready for 11 here; or quickly make a deal instead of relying on Washington and the taxpayer to subsidize your members indefinitely.
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BigWill 11:40AM (2/20/2009)
Ron Middelfinger has no incentive whatsoever to make a deal with GM for one basic reason - he has a ringer on the vaunted Presidential Task Force.
jdemonto 8:54AM (2/20/2009)
I knew this was coming, GM needs to liquidate like...yesterday. Its sad for saab, was anyone really buying them here in the Us?
Jason
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aeroturbo 10:00AM (2/20/2009)
Yes, we have tons of Saabs up in the Boston - Providence metro area. They were not marketed nor was there sufficient dealer network in the rest (read majority) of the country.
jim 10:27AM (2/20/2009)
There are a couple of markets where Saab (and Volvo) do well, as AeroTurbo mentioned Boston and New England in general, and Minneapolis. There are two Saab only, and Volvo only dealers within 35 miles of my house. Both brands are definitely fill niche markets
Chris 10:44AM (2/20/2009)
Tons of them here in Boulder, CO, as well.
Alex Hobbs 12:02PM (2/20/2009)
Lots of Saabs and Volvos in Chicago.
KLR 5:45PM (2/20/2009)
only sold about 54,000 nationwide over the last two years ==> that's less than 0.2% US market share
Ben 8:53AM (2/20/2009)
Why oh why couldn't GM make Saab work?
After all the 95 was only 11 years old.
Oh and who needs leasing...only the majority of Saab owners....
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Jake 8:59AM (2/20/2009)
Do car companies in Sweden circle the drain counterclockwize or clockwize?
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AirRaid 9:03AM (2/20/2009)
Whatever way everybody else is going down, they go the opposite way since they're going down faster than everyone else.
Jsams4131 9:26AM (2/20/2009)
i always liked the 9-3 but I think that out of personal tastes i would have axed another brand before this.
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