Friday, Saab filed for bankruptcy protection from it's creditors. Saab is a Swedish-based subsidiary of GM. This move came after the Swedish government refused GM's begging for a bailout. This is very strange situation. Socialist Sweden is refusing to bailout their automotive industry. Allegedly, capitalist America is throwing billions of taxpayer dollars down the automotive bailout sinkhole. I never thought I would say this, but I hope our government finds the wisdom of Sweden. That really left a bad taste in my mouth.
GM unit Saab files for protection from creditors
Feb 20 04:56 AM US/Eastern
By KARL RITTER
Associated Press Writer
STOCKHOLM (AP) - General Motors Corp.'s Swedish-based subsidiary Saab filed for bankruptcy protection Friday so it can be spun off or sold by its struggling U.S. parent, officials said.
The move comes after Sweden turned down GM's request for government help for Saab.
An application to reorganize the Swedish-based unit was filed at a district court in Vanersborg, in southwestern Sweden, Saab spokeswoman Margareta Hogstrom said.
The move comes after the Swedish government rejected a request from loss-making GM to inject money into the carmaker. GM, which is seeking help from the U.S. government to avoid bankruptcy at home, has been looking for buyers for Saab but said it needs more funding to spin off or sell the division.
"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal restructuring would be the best way to create a truly independent entity that is ready for investment," Saab's managing director, Jan Ake Jonsson, said in a statement.(excerpted) read more at breitbart.com
I am for trying to help our auto manufacturers survive. But there comes a time when you have to pull the plug and let nature take it's course.
ReplyDelete"yousich" another insulting verification word IR. Even when I'm on the same page as you I get insulted.
SAAB Europe has been profitable, despite GM's best attempts of sabotage.
ReplyDeleteGM wanted the original 9-5 to be one meter longer than the final design.
Check out how many concept cars SAAB has coughed up during the past ten years. Compare that with the number of new models.
SAAB wanted to show off a hybrid 9-3 convertible a few years back, with a power plug concealed behind the SAAB trunk logo. GM ordered them to glue the logo lid shut and not tell anyone about that car.
GM forced SAAB to move the production of the 9-5 to Opel's plant in Germany. This cost SAAB a lot of money, because production in Sweden is cheaper.
There are countless stories like that.
Now, SAAB finally have several new models already launched or ready to launch. The 9-3x is an interesting crossover, the new 9-5 has been spotted on the roads (covered up of course) and for you americans they have a SUV called the 9-4x ready for production. Further ahead, the 9-x convertible looks quite nice and should also sell well.
Yes, this may be "natural selection". SAAB was gobbled up by a larger beast, chewed up and then spat out. But with their current and near-future lineup, they were poised to take the market by storm. They deserve another opportunity. GM gave them nothing, but sure took a lot. The only thing SAAB got out of this, was GM's mantra "safety does not sell". (feel free to compare the safety rating of an Opel with that of a SAAB -- then tell me which car you'd rather drive if hitting a large animal like a moose while you're driving 60 mph)