Saab files for bankruptcy

* End of the line for Saab? * Firm fails to land Chinese investment * Former parent company GM blocks sale...

19 Dec 2011 10:43 | Last updated: 14 Jun 2018 00:03

Saab has filed for bankruptcy at a Swedish court.

The company had been in discussions with Chinese car makers Pang Da and Youngman, although Saab's previous parent company, General Motors (GM), threatened to cut access to vital technology and the supply of the 9-4X SUV if a deal was signed. GM has a joint-venture in China with a rival Chinese car maker.

In a statement, Saab said: 'After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded.

'The Board of Saab Automobile decided that the company, without further funding, will be insolvent and that filing for bankruptcy is in the best interests of its creditors.'

What about UK Saab owners?
Louise Wallis, from the Retail Motor Industry Federation, moved to reassure UK Saab owners.

'There's no need to panic: there shouldn't be any servicing or part supply problems.

'When MG Rover went down, most dealers helped their customers.'

Saab timeline
December
GM reiterates its stance that it would not support the sale of Saab to Pang Da and Youngman. Saab chief Victor Muller hands in the bankruptcy application himself at the District Court in Vanersborg, Sweden.

November
Saab GB goes into administration.

October
Saab announces that it will be sold for a knock-down price of 88 million to Chinese car makers Pang Da and Youngman. Saab chief Victor Muller claims he's confident that the deal will go through. However, almost immediately, former parent company GM warns it will cut the supply of technology and the 9-4X if the deal is completed.

GM operates a joint-venture with Chinese car maker SAIC, a competitor to Pang Da and Youngman.

September
Saab files for bankruptcy protection. It wanted to reorganise the company in order to secure short-term funding and protect itself from its creditors, while continuing negotiations with Pang Da and Youngman.

Unions, whose members hadn't been paid since August, take Saab to court.

July
In a bullish move, Saab announces it will build a Mini rival called the 9-1, a large 4x4 and a big saloon.

This followed an agreement where Pang Da and Youngman agree to invest 220 million into Saab.

However, later in July, it says the resumption of production at its factory has been delayed and staff wages aren't paid.

**May
A deal to get investment from Chinese firm Hawtai is terminated, but soon after Saab announces that it is in discussions with two other Chinese firms, Pang Da and Youngman.

**April
Production at Saab's Trollhattan factory stops.

**February 2011
Saab unveils the Phoenix concept car at the Geneva motor show.

January 2010
GM sells Saab to Dutch sports car maker Spyker.
**