Saab is actually, finally finished. The company filed for bankruptcy in Sweden today—and not the kind that American Airlines currently is using to reorganize and shed some debt. Essentially the Swedish equivalent of what we call Chapter 7 in the U.S., Saab’s filing means that the company will be liquidated so that its creditors get at least a small percentage of the money they’re owed.
Saab was feverishly working to raise money from Chinese investors Youngman and Pang Da, but GM remained unsatisfied with any of the proposals and vetoed the rescue plan this weekend. The crux of Saab’s demise was how to manage General Motors’ intellectual property if the Swedish firm was purchased by one or more of the Chinese companies. A month ago, GM stopped production of the 9-4X, the crossover it built for Saab alongside the Cadillac SRX; execs at the General didn’t want to just hand Chinese companies blueprints and completed products that cost billions to develop.
Saab’s remaining assets will be liquidated by a court-appointed administrator. This includes any production facilities (we expect that the Swedish government or local investors will buy these), tooling, patents, and of course, the rights to the brand itself. In all likelihood, Youngman, Pang Da, or another Chinese company will score the rights to the Saab brand name, and produce new vehicles in China with the Griffin logo. This is similar to what happened with MG and Rover, which live on as Chinese brands.
In the U.S., dealers will have to scramble to sell off remaining stocks before values plummet even further in the next few weeks. The oldest Saab dealer in the U.S., Massachusetts-based Charles River Saab, posted a notice on its website this morning saying. “Even though we are profoundly saddened by Saab’s bankruptcy filing today, we promise that we are not going anywhere.” The dealership says it will continue to service Saabs, supply parts, and sell used models. This is similar to what happened with Alfa Romeo and Peugeot dealerships in the 1990s when their manufacturers left the U.S. market. Fortunately for the dealership’s employees and customers in the area, Charles River Saab is owned by an enormous company that owns seven additional franchises, including more-stable brands like Honda and Nissan. Other Saab dealerships are likely to be less fortunate.
For a look at how Saab ended up here, check out our timeline of its collapse. And check back for any updates, from any other 11th-hour rescue attempts to announcements of who end up with the rights to build 1980s-vintage 900 hatchbacks.
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