Sunday, February 22, 2009

Report : Saab files for bankruptcy in Swedish courts, wants $1 billion for its independence

With this time of year, where GM and Chrysler are still suffering from the financial crisis, we have to say that Saab sales for cars are quite poor. That is why GM confirmed that Saab's -GM owns Saab- days with GM are numbered. The Swedish brand has filed paperwork with courts in Sweden to announce bankruptcy. Ofcourse, announcing bankruptcy takes the U.S. Chapter 11 bankruptcy process, and that leads to the independence of the company. That means, after Saab announces bankruptcy, it will eventually lead to the independence of the Swedish Saab.

But in order to happen all that, GM needs to line-up financing for the new company, which could be a problem. Because according to Automotive News, GM needs to pay as much as $1 billion to make Saab on its own. As we all know, GM isn't fund at the moment!

Also, GM had plans to introduce Saab cars for 2010, such as: the new 9-3X, 9-5 and 9-4X. The new 9-4X crossover was scheduled to be built in Mexico alongside the Cadillac SRX. So if Saab splits from the General, what's going to happen? The most-common thing that could happen is to officially spilt after 2010.

Source : [General Motors via Automotive News]

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