Saab almost death, Swedish Auto shares suspended image

The Dutch financial market regulator, on December 12 halted trading in shares of Swedish carmaker Saab’s parent company until further notice.

In addition, according to several sources, Viktor Muller is giving up his attempts to save Saab Automobile from bankruptcy.

However, Anette Hellgren, chair of the Saab chapter of the Unionen labour union, told TT she hadn’t heard anything about the reported bankruptcy either.

“We haven’t heard anything about this,” she said.

*Whether negotiations between Saab and Chinese firm Youngman have reached a conclusion also remains unclear.

Last week a court-appointed administrator asked the court to declare the company bankrupt and a verdict is expected to be delivered by the end of the week.

Saab could not be reached for comment. The company’s most recent public statement is that it is continuing to seek new financing.

Production has been suspended at Saab’s main plant in Trollhattan, Sweden, since April. Employees have not been paid since last month.

General Motors sold Saab in 2010 to Dutch luxury carmaker Spyker – now renamed Swedish Automobile – but GM remains a stakeholder and is reportedly concerned about use of its technology licenses.

  • Joseph Tan

    If you are Youngman, Pang Da or the bank of China what would you think:-

    i) Saab is about to go under

    ii) Even in goof time, Saab just sold about 130, 000 cars which is not even enough to
    sustain herself.

    iii) Now, with Pang Da and Youngman trying to get 100 %, GM refused to bulge saying lose of market share in China.

    iv) Even when the share is less than 50 %, GM still says no.

    v) Meaning even if Youngman, Pang Da or the bank of China or what not, throw in the life-line with cash, they still cant reorganise Saab without GM approval – and GM continue to say no.

    vi) Why should the Chinese thrown good moneys to bad assets (or put fresh wine into old wineskin!) knowing that it would not stop the bleeding?

    vii) Alternatively is to get Geely (the taker of VOLVO) to take-over Saab with a less costly affair without any GM intellectual property at all since VOLVO should have the sufficient IP.

    vii) Question is since GM holds the preferential shares, would GM gave in notwithstanding Saab is NOT using any of the GM platform????