Friday, February 20, 2009

Saab Declares Bankrupcy

Many of the worlds auto manufacturers are in financial trouble due to the severe decline in auto sales. Today, Saab was the first auto manufacturer to declare bankruptcy. The Supervisory Board of Saab decided that bankruptcy was the solution and notified the 4000 employees how the company will continue to operate. The filing is apparently similar to a Chapter 11 filing in the United States, which allows the organization protection from the creditors while allowing the company to restructure.

Shown below is a 2008 Saab 9-3, which is Saab's most popular model.

Sweden's government had turned out a bailout request from the parent corporation GM. GM has indicated in the court filing that the company "would not fund further the projected losses of the company (Saab)." It appears that GM and the Swedish government are playing a game of chicken. Unfortunately, a high number of jobs are on the line if this does not work out.

Last year Saab lost about 3 billion Swedish crowns ($340.1 million) and anticipates that 2009 would lose about the same amount. Saab Managing Director Jan-Ake Jonsson indicated that they will continue to explore all available options for funding and or selling Saab, it was determined that a formal reorganization would be the best way to create a truly independent entity that is ready for investment.


  1. Hi Peter
    This is certainly an indicator of the economy. Let' hope Obama can get things on track
    Barbershop Jerry

  2. that is a bummer but its not like every car co. is going to make it through this slum that the world is experiencing.

  3. Hi Pete .. it's a pity these smaller specialist manufacturers were swallowed by the big guys in recent years .. I hope we can get back some of the smaller specialist independent car firms .. it'll be interesting to see what happens here in Europe.
    Thanks - Hilary: Be Positive Be Happy

  4. Barbershop Jerry,

    Thanks for visiting my blog! I appreciate your comments! Please feel free to make any requests!

    I agree Obama will help to get the economic situation turned around but it will take a while. There will be a lot of damage to the auto
    industry - they take it on the chin during difficult economic times.



  5. Anonymous,

    Thanks for visiting my blog! Please feel free to request a post on a particular car or issue.

    Unfortunately, your correct - there will be a number of car companies that go out of business. It is sad! The strong will prevail but some of the weaker companies gave us some memorable cars.


  6. Hilary,

    Thank you for visiting my blog and commenting!

    I think it will be interesting to see which car companies survive! We have just been thru a golden period of the automobile now it is sad to see it end!

    I will keep you posted on the latest European developements!

    Best Regards