Last Friday the Saab Board announced that it filed for reorganization under a self-managed Swedish court process to create a fully independent business entity that would be sustainable and suitable for investment. With sales of just 21,383 vehicles in 2008, Saab is G.M.'s smallest of GM's eight brands in the United States. The 9X Convertible Concept as seen in Chicago this month is at the forefront of the above photo.
According to the news release on GM's website, "The reorganization is a self-managed, Swedish legal process headed by an independent administrator appointed by the court who will work closely with the Saab management team." Similar to Chapter 11 in the U.S. Creditors will see the proposal within three weeks of the filing. Pending court approval, the reorganization will be executed over a three-month period and will require independent funding to succeed.
"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment," said Jan Ake Jonsson, Managing Director for Saab Automobile. "With an all new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs. Reorganization will give us the time and means that help get these products to market while minimizing the liquidity impact of Saab on GM."
Saab will continue to operate as usual and in accordance with the formal reorganization process, with the Government providing some support during this period. The reorganization should have no impact on other GM operations.
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