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Is Saab Gone For Good?


Is Saab Gone For Good?

Author: Trent NikolicDate: 25 October 2011
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With those negotiations all but over, it would appear that Saab will now struggle to avoid complete and final collapse. Saab has staked its future on a partnership with these two companies and has been protected under court order while it attempts to reorganise its affairs.

However, according to the NY Times report, Saab’s parent company Swedish Automobile, said over the weekend that it was terminating the deal because the two companies, Pang Da Automobile Trading Co and Zhejiang Youngman Lotus Automobile, ‘failed to confirm their commitment’.  That means the two companies haven’t stumped up to pay a combined 245 million Euros for a 54 percent share in Saab. Further, the agreement would have called for bridge funding by October 13 to get Saab through the reorganisation.

Saab’s main plant in Trollhattan has not produced any cars since April and in September; Saab’s own unions commenced court action that might have led to the automaker being declared bankrupt. That’s when the court stepped in at the behest of chief executive, Victor Muller and placed the company under protection to attempt to negotiate a way through the mess.

The Chinese companies reportedly wanted to buy all of Saab, with Mr. Muller describing that deal as unacceptable, thereby putting Saab’s future in serious doubt. It’s not like backers have been lining up to take a controlling interest in Saab.  Only a week ago, the administrator appointed by the court to oversee the reorganisation, called an end to his involvement saying that the process should be halted because Saab lacked sufficient funds to continue.

Apparently conversation between Saab and the two Chinese companies is ongoing. However, it has to be said that the future doesn’t look too bright. Saab has been in trouble for some time now and it seems less and less likely that there is any light at the end of the tunnel.

 

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