It looks like it may be the end of the road for Saab: the automaker filed for bankruptcy in Swedish court this morning, capping off a years-long saga in which the company very nearly dissolved many times.
The move was announced early this morning by Swedish Automobile, Saab’s parent company, which is still headed by embattled CEO Victor Muller. Muller was the architect behind the $400 million deal back in 2010 to purchase the brand from then-bankrupt General Motors.
While Muller’s purchase of Saab may have bolstered General Motors’ finances, it was GM that apparently did Saab in. The bankruptcy came shortly after GM, which is still a key supplier to the production of Saabs, blocked a deal that would have allowed Chinese automaker Zhejiang Youngman Lotus Automobile to help fund Saab’s reorganization. GM had maintained the ability to veto any plans for the brand’s restructuring when it sold off the automaker in 2010.
Saab now goes into bankruptcy with little to no hope of exiting. Especially telling is the end of Swedish Automobile’s statement: “[Swedish Automobile] does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.” For a company that once loudly proclaimed its cars were born from jets, it looks like the embattled Saab brand will die in receivership.
Source: Automotive News (Sub. Required)