SAAB News: Has Saab Used Up All Their Lives?

[William Maley]

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When we last checked in on Saab, they had announced a deal with Youngman automotive and a bank in China and were waiting on approval from GM and the Chinese.

Well Saab might have just used it's last life. Yesterday, General Motors announced they wouldn't support the new agreement.

"We have reviewed Saab's proposed changes regarding the sale of the company. Nothing in the proposal changes GM's position. We are unable to support the transaction," said GM spokesman Jim Cain.

And the news gets even worse for Saab. In a press release today, Saab's parent company Swedish Automotive revealed the administrator in charge of Saab's reorganization for the Swedish government, Mr. Guy Lofalk would apply for termination of voluntary reorganization of the automaker.

Lofalk has tried to apply for termination of the reorganization back in October, but was met with anger and threats of removing him from the reorganization.

However, that isn't stopping Saab to try one last ditch effort to get some money. Victor Muller, Saab's boss Saab boss Victor Muller is reportedly seeking a loan worth over $800 million from proposed Chinese partner Youngman and an unnamed bank.

Source: Autoblog, The Detroit News

Related:

The Continuing Story of Saab, Part 412.5: Three Ring Circus

A Chinese Bank Becomes An Investor In Saab

Press Release is on Page 2

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7 December 2011

Swedish Automobile Informed By Administrator Of

Application To Terminate Voluntary Reorganization

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces it has been informed that the administrator of the reorganization, Mr. Guy Lofalk, will apply for termination of the voluntary reorganization of Saab Automobile AB (Saab Automobile) and two subsidiaries with the District Court in Vänersborg, Sweden.

Saab Automobile and its creditors have approximately five to six days to submit their view to the District Court before the Court takes a final decision about termination of the reorganization. The management of Saab Automobile will consider future steps and continues the current discussions with Youngman about the necessary funding to pay the wages and be able to continue the voluntary reorganization.

View full article

[67impss]

Soooo does GM swallow them up on the cheap?

Tune in tomorrow same Bat time same Bat channel

[A Horse With No Name]

Probably not, not enough brand equity or volume to keep them around...a shame...they built some cool funky crs back in the day.

But as it is, the free market has spoken and people don't seem to want enough Saab cars to keep the company afloat

[Drew Dowdell]

the problem is, if they liquidate, there is a bunch of financial responsibility that falls back onto GM.

[67impss]

So will they buy it back

They don't have to build Saabs

Edited December 8, 2011 by 67impss

[Drew Dowdell]

I don't know that they will buy it back... but the liability for certain things will fall back to them automatically.

[67impss]

Then might as well get the plant & tooling if they gotta pay anyway.

[Z-06]

Liability of what? As far as the ownership goes, GM has preferred share, in fact GM would be the one in the collection line, unless I am missing something.

[ZL-1]

What a f###ing circus this story has become...

[Drew Dowdell]

Liability of what? As far as the ownership goes, GM has preferred share, in fact GM would be the one in the collection line, unless I am missing something.

Remaining warranty liability, parts availability,

[Z-06]

Depends how the agreement was signed with Muller. If SAAB took everything except intellectual property rights from GM, then that should not be a concern, unless laws are different in Sweden.

[Drew Dowdell]

I remember it being one of the hangups on selling to him in the first place. GM wanted to be reassured that there was enough capital to cover those liabilities in the event that they folded because those liabilities would revert to GM at least in the U.S. It looks like there clearly isn't enough capital.

[Robert Hall]

LAlaLAlaLAlaLA...around and around it goes..when will it all end?

[Z-06]

That is what I read too. The way GM is playing the game seems like the top brass is not worried about that aspect.