http://zerocars.blogspot.comTough times keep getting tougher for GM's Swedish subsidiary. Today, Saab filed for bankruptcy protection with the Swedish government. The company will go through a restructuring process with the intention of becoming an independent entity.
The decision to file for bankruptcy was foreshadowed by the Swedish government's decision to deny the Trollhattan-based automaker any federal aid. Instead, the country feels that Saab's U.S. parent should bear its financial burden on its own. According to GM, the reorganization will be a "self-managed Swedish legal process." Saab will receive an independent administrator appointed by the court who will work with the Saab management team. Part of the restructuring plan will include concentration of design, engineering and manufacturing in Sweden. Saab says the process will take three months and will require funding from "from both public and private sources."GM said it has developed a proposal that would end its financial support of Saab with the Swedish automaker "effectively becoming an independent business entity" by January 1, 2010.Saab seems to maintain a positive outlook for the future. Jan Ake Jonsson, Managing Director for Saab Automobile, said "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. Reorganization will give us the time and means that help get these products to market while minimizing the liquidity impact of Saab on GM."