Saab Steps Away From GM and Files for Reorganization
by KBB.com Editors | February 20, 2009 1:07 PM
Facing a forced decoupling from General Motors by year's end, Saab has filed for its own "reorganization" in the Swedish courts. Akin to a U.S. Chapter 11 bankruptcy, it will buy time for the struggling automaker to attempt to recreate itself as a viable and independent operation. Success in that undertaking, however, will require securing new capital of about $1 billion from sources outside of its current parent GM or the Swedish government. Jan Ake Jonsson, managing director for Saab Automobile outlined the situation: "We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment. 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."