An unwanted Christmas gift for Saab 0

General Motors have blocked prospective Chinese investors from saving Saab leaving the company no choice but to file for bankruptcy.

Saab has finally given in after years of uncertainty. We have reported on numerous occasions on the our blog how the Swedish car producers have had many struggles. Although it may have appeared that there could be light at the end of the tunnel, Saab’s days are now well and truly numbered.

Finally

Victor Muller, the Saab CEO has personally submitted the bankruptcy application to the appropriate courts in Sweden. Mr Muller was on a personal mission to revive the company’s fortunes. After two years he has no choice but to finally concede defeat. The courts are expected to accept Saab’s declaration later this week.

Saab employ over 3,000 people who are surely looking for other jobs. Some however have that they still hope that a perspective buyer could jump in before it’s too late. Would General Motors still have a problem?

Spyker Cars had promised to purchase the brand and revive the companies “Swedish identity”. The deal fell through as the funds needed to complete the deal were simply not provided.

Saab have resisted the threat of bankruptcy before even when production was cut along with payment to suppliers and employees.

General Motors threatened

General Motors own technology licenses from Saab. The former owners of the company were concerned that they may fall into the wrong hands in form of Chinese rivals. The negotiations ended after General Motors rejected the latest proposal from their Chinese investors.

The company could still be sold amid the bankruptcy. General Motors hold the key, but they are unlikely to let anyone takeover. They are said to be too afraid of anyone getting hold of their associated technology licenses.

Britain was Saab’s biggest market outside of Europe. It’s a sad time for the Swedish company, who started off as an aircraft developer. The vehicle has been a household name throughout the world for a number of years. Their production of brilliant models such as the 9-5 helped establish Saab as one of the best.

Warranties of new Saab’s purchased in the UK will still be valid according to the company’s website.