Tech & Biz

Saab Files for Bankruptcy Protection

by Jordan Yerman | February 20, 2009 at 11:33 am

486 views | 6 Recommendations | 5 comments

Saab is filing for bankruptcy protection after getting cut loose by GM. The Swedish automaker lost the equivalent of over $340 million in 2008, with 2009 set to be equally dismal. The original plan was to reorganize for a takeover by the Swedish government, but the potential deal fell apart, and Saab's restructure filing (the equivalent of bankruptcy protection) has been approved by the government.

Saab, which G.M. said would become an independent business by 2010, went to a Swedish court for protection from its creditors, and said the company would — with assistance from the Swedish government — reorganize to pave the way for private investors to buy all or part of it.

Saab’s application for bankruptcy was later approved by the Swedish courts.

This is not the end for Saab, though: three new models are forthcoming as the company strives to keep its head above water.

“Today is the beginning of a new chapter in Saab’s history”, said Jonsson in a statement, adding that “the road ahead will not be easy”.

“Many have already suffered considerably as a result of the crisis in the automobile industry and sacrifices will be a part of our future, but after a period of tough decisions we will have laid the foundations for a new beginning.”

I post this with heavy heart: when I first moved to California (as a small child), a neighbor had a Saab 900 (black) in the carport. I, and other local kids, thought it was the coolest car in the complex, and the owner was a really anal-retentive guy who would run out and shoo us away, apparently terrified that our stares would somehow damage his ride. It became a game for us: how close could we get before he flew out his front door screaming?

The answer: pretty close.

While Saab built an empire on jet engines and sports cars, I always think of that guy whenever I see one.

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Turbojohnny (not verified)

at 12:34 on February 20th, 2009

i think that saab can only benefit from something like this, well at least i hope. GM didn't really do them any favors. Hopefully after all is said and done Saab will become more of what it used to be. quirky, fun, turbocharged, sports/luxury cars.

Powar

at 13:01 on February 20th, 2009

The picture that I contributed is my daily-driven '72 SAAB 95.

Regarding the story... I'm excited about the opportunities that may present themselves with Saab under new management, but I question how this is going to affect their dealer and parts networks in the United States. There is a lot of gray area that will have to be addressed if this is to be a successful endeavor.

Powar has contributed a photo to this story.

car1edb

at 14:23 on February 20th, 2009

The sinking GM Titanic jettisons another nice car company... Hope they survive going the indy route.

SuperEirik

at 05:41 on February 21st, 2009

Saab 9000 in Luleå, Sweden.

SuperEirik has contributed a photo to this story.

hammershaug

at 14:10 on February 22nd, 2009

Døla-Is was an ice-cream factory in Lillehammer, known for the vanilla cone ice-cream, «Krone Is». Underneath the pasteboard disc on top of every Krone-is, there was a picture of a car. I used to collect these in my childhood. This picture of the Saab Sonett III is from my collection of «ice-cream-car» Have a look at the entire collection at my Flickr-account

hammershaug has contributed a photo to this story.