Saab Declares Bankruptcy
GM vetoes deal involving Chinese company
By Kevin Spak, Newser User
Posted Dec 19, 2011 7:19 AM CST
Saab's all-new 9-4X Crossover Arrives in Dealer showrooms.   (PRNewsFoto/Saab Cars North America)

(Newser) – Saab finally threw in the towel today, after former owner General Motors once again vetoed a rescue plan involving China’s Zhejiang Youngman Lotus Automobile. Saab’s current owner, Swedish Automobile, filed for its bankruptcy, saying that "the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors." Saab hasn’t made any cars since April, thanks to growing debts, Reuters reports.

GM still licenses technology to Saab, and holds a minority stake in the company. It said it couldn’t continue to supply parts to Saab if it were owned by Youngman, because that would harm its own operations in China. Shares of Swedish Automobile, which had been suspended, plunged 62% today, all the way down to 8 euro cents.

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Showing 3 of 3 comments
Sayyiduna
Jan 8, 2012 2:28 AM CST
I'm actually really sad to see this brand go. I grew up with them being fairly well-known in the Eastern Bloc as dependable, excellent vehicles. Besides that, not to mention, I consider their styling absolutely top-notch; even the entry-level 2011 Saab 9-5 has an interior/exterior style that isn't matched in distinctiveness by their German and American counterparts. The Saab 95 especially, with the heads-up display, wrap-around "cockpit style" driver area and an impressive suite of cabin electronics, it's downright surprising they aren't a more solid competitor. But then again, they had an absolutely horrible new-model production schedule, which I think ultimately doomed them. No amount of quality can make up for a drop in brand relevancy, especially seeing as their big competitors have been slugging it out with yearly competition for years.
Rammrodd
Dec 19, 2011 9:57 AM CST
In Obama's economy, who can afford a quality Swedish car? Time for the Yugo to come back.
Fascist_Jack
Dec 19, 2011 7:56 AM CST
Market justice. The cars just came across as too effeminate.