Saab to become a fully independent company

Article by Christian Andrei, on August 27, 2010

The goal of the Swedish carmaker this year is to be come a fully independent company in the next six months and to do this it has to declare bankruptcy.

After a meeting with Swedish unions, Han Ake Jonnson said that they will continue to explore all possible options for funding and/or vending Saab and it was decided that a reorganization would be the ideal means by which to create a truly independent body that is geared up for new investments.

GM, the owner of Saab, wants to remove itself from the Swedish car company, and Saab has filed for a reorganization under a self-managed Swedish legal procedure.

This means that Saab will go into bankruptcy protection, when the firm is set in administration but is sheltered against creditors. This move will provide Saab time required to reorganize itself and will turn up with a plausible plan for the future.

This will require the relocation of design, engineering and manufacturing of its vehicles to Sweden, but GM may continue to be involved due to the fact that the two brand new models of Saab, the 9-5 and 9-4X, employ GM technology.

Saab is currently looking for financial backing for the restructure company since GM is planning to remove funding for Saab.

Saabs proposals will be submitted to creditor three weeks after applying for the restructuring with the courts of Sweden. The reorganization will take up to three months when approved.

Topics: saab, sweden

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