Saab files for bankruptcy after GM veto

Thank you for using rssforward.com! This service has been made possible by all our customers. In order to provide a sustainable, best of the breed RSS to Email experience, we've chosen to keep this as a paid subscription service. If you are satisfied with your free trial, please sign-up today. Subscriptions without a plan would soon be removed. Thank you!

Swedish carmaker's owner admits defeat after former parent General Motors blocked a rescue deal involving a Chinese firm

Sweden's Saab faced an end to more than 60 years of carmaking on Monday after its Dutch owner abandoned repeated attempts to find financing and filed for its bankruptcy.

The end to months of efforts to keep the famed carmaker afloat came when General Motors at the weekend again vetoed a plan involving Chinese investor Zhejiang Youngman Lotus Automobile. GM, Saab's former owner, still licences key technology to Saab and has a small shareholding.

"After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganisation of Saab Automobile could not be concluded," Saab owner Swedish Automobile, which is listed in Amsterdam, said.

"The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors."

The company has been on the edge of demise since March, when cash problems forced it to halt production of its much-loved cars.

It later briefly restarted output at its plant in west Sweden, but mounting debts to suppliers caused a halt again in April,. It has not made any vehicles since then.

Swedish Automobile chief executive Victor Muller stitched together a series of deals to rescue Saab, but General Motors has said it could not accept an option involving Youngman.

GM, which operates in China in a partnership with state-run SAIC Motor Corp, said in early November that continuing to supply parts and technology to Saab's new owners would run counter to the interest of its own shareholders.

Swedish Automobile said in the statement that it expected that the court would approve of the filing and appoint receivers for Saab very shortly.

• Saab
• Automotive industry
• General Motors
• United States
• Sweden
• China

guardian.co.uk © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

Tania Branigan 19 Dec, 2011

--
Source: http://www.guardian.co.uk/business/2011/dec/19/saab-files-bankruptcy-gm-veto
~
Manage subscription | Powered by rssforward.com

Ditulis oleh: Admin - Senin, 19 Desember 2011