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The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
 |  Dec 07 2011, 2:15 PM

Saab has officially been struggling for two whole years now, since its problems first came to light in December, 2009.

With time, it has seen some positive developments, but things don’t look any better for the foreseeable future.

A few months ago, Saab had received a court order that prevented its creditors to push the company into bankruptcy. It would use this time to reorganize. However,  Saab’s owner – Swedish Automobiles NV, has said that Saab and its creditors have just five to six days to submit their views to the district court in Sweden. The court will decide whether to end the reorganization and push the company into bankruptcy.

Despite attracting two major Chinese companies (Pang Da Automobile Trade Co. & Zhejiang Youngman Lotus Automobiles) to invest in Saab, there have been delays in getting the necessary payments from the Chinese, and production lines have been sitting still for almost an entire year.

Saab previous owner, General Motors also has some objections. Most of the technologies found in current Saab vehicles is licensed from GM, and it does not want to support a sale of Saab that could hurt its own position in China.

GM currently builds the 9-4X for Saab in Mexico. If GM pulls the plug on their deal with Saab, it would be impossible for the company to survive in its current form.

Stay tuned, as this drama is far from over just yet.

[Source: Automotive News]

 |  Sep 21 2011, 12:00 PM

The Saab soap-opera continues, but this week the news is good. Saab just won a court appeal to protect it from creditors while it awaits funding from its Chinese investors.

Earlier this year, two Chinese companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. agreed to buy shares in Saab, totaling $334-million.

Considering Saab currently owes $207-million to its employees and creditors, so once the money is received, it can easily pay down its debt.

The lower-court had initially rejected protection to Saab, citing that it had done so once before in 2009-2010.

How long will it actually be before Saab’s 3600 employees and its creditors will get paid? That is dependent on how quickly its Chinese investors can pay their due.

For now, the court has given Saab some breathing room. Saab’s production line has sadly been at a standstill since April 2011. Let’s hope they can once again start making beautiful and wonderful cars like the original 92 (pictured).

[Source: Automotive News]

 |  Aug 26 2011, 12:40 PM

Debt ridden Saab is to apply for court protection from its creditors in a bid to stave off bankruptcy get again. For months, the automaker has struggled to raise finances to pay off suppliers, and as a result, has halted production. Saab was rescued from bankruptcy last year by Dutch owner, Swedish Automobile (formerly Spyker), as former owner General Motors prepared to shut the company down

Saab has declined to comment on the issue but, spokeswoman Gunilla Gustavs said that the company is continuing to work on raising the necessary funds. The Swedish automaker’s most recent statement said, ” Saab Automobile AB is now working on other options to secure bridge funding which would allow us to stabilize  operations, finalize negotiations with suppliers on payment and delivery terms and restart production”.

If Saab obtains a court creditor protection order, it would place the company into a process of corporate restructuring. Under this process, which Saab entered in 2009 after GM made clear its intention to cease funding the company and exited later that year, the company is granted temporary protection from creditors while an administrator and management seeks to restructure the company into a viable business.

[Source: Automotive News]