agent Entrepreneur logo
MenuMENU
SearchSEARCH

Saab Automobile Breakup Looms on Chinese Cash Limit, GM’s Snub of Venture

December 19, 2011
4 min to read


Saab Automobile’s assets may be broken up and sold to pay debt as the unprofitable Swedish company ends more than six decades of carmaking following a bankruptcy filing.


Saab Auto submitted the application at Vaenersborg District Court after a potential Chinese partner wasn’t able to provide funding while General Motors Co., a former owner, said it would block the proposed tie-up, parent company Swedish Automobile NV said today in a statement.

Ad Loading...


“There’s no doubt this is the blackest day in my career,” Chief Executive Officer Victor Muller said at a press conference today at Saab Auto headquarters in Trollhaettan. The company’s workforce totals about 3,600 employees, including 3,400 in the southeastern Swedish town.


Muller has been seeking funding for Saab since his Zeewolde, Netherlands-based company, then named Spyker Cars NV, bought it in February 2010 from Detroit-based GM, which was about to shutter the brand. Muller was in talks earlier this month with potential Chinese financial backers, including Zhejiang Youngman Lotus Automobile.


The court said in an online statement that it accepted the petition and appointed two Gothenburg, Sweden-based attorneys, Hans Bergqvist and Anne-Marie Pouteaux, as administrators, reported Bloomberg.


GM, which still has a say in Saab’s strategy because of the carmakers’ technology ties, said on Dec. 17 that recent proposals for rescuing Saab were similar to earlier plans that it had rejected as being “detrimental to GM and its shareholders.”


The U.S. carmaker “made it clear it would not approve of a transaction involving Youngman,” while difficulties with rules on transferring funds out of China prevented a financing deal, Muller said today.

Ad Loading...


Muller said that he received “two or three” expressions of interest today from potential buyers, and that he’ll refer them to the bankruptcy administrator that the court appoints.


“Although this may seem like the end, it is not necessarily so,” he said.


Saab Auto traces its roots back to the establishment of aircraft manufacturer Svenska Aeroplan AB, which was set up in 1937 and began building cars 10 years later. The auto business was split off from the aerospace operations, now called Saab AB, in the 1990s, with GM gaining a 50 percent stake in 1990 and full control in 2000.


Muller set targets for Saab to sell 120,000 vehicles and become profitable by 2012. Deliveries, which peaked at 133,000 cars in 2006, never met intermediate goals. Sales totaled 31,696 cars in 2010, compared with a target of 50,000 to 60,000.


The Swedish carmaker’s production lines have been largely suspended since March as the company fell behind on paying suppliers. Saab won protection from creditors in September. Guy Lofalk, its court-appointed administrator, applied on Dec. 7 to end the reorganization, saying the carmaker was out of money and had no realistic hope of gaining financing soon.

Ad Loading...


“Saab is so central to Trollhaettan,” said Perry Svensson, a taxi driver in the city who worked at Saab as a welder in the 1980s and whose sister is an assembly-line worker there. “We already have high unemployment here, and this certainly doesn’t help.”


The government of Sweden pays wages of employees of bankrupt companies for a limited time. Prime Minister Fredrik Reinfeldt said at a Stockholm press conference today that the state will work to help Saab’s workers “move on to other parts of the labor market.”


Swedish Automobile plunged 62 percent to 8 cents at the close in Amsterdam. Shares in the Dutch manufacturer, which makes the $235,000 Spyker C8 Aileron supercar, have dropped 98 percent this year, valuing the company at 2.9 million euros ($3.8 million).


Muller was pursuing a 600 million-euro loan from Youngman and a Chinese bank following a failed attempt earlier this year to sell a stake to the Jinhua-based carmaker and auto dealer Pang Da Automobile Trade Co.


Other suitors whose talks have collapsed this year include Russian banker Vladimir Antonov, a former Spyker investor seeking to return after GM’s terms of Saab Auto’s sale forced him out, and Hawtai Motor Group, another Chinese company.

Ad Loading...


Saab’s suppliers, which total about 900 companies including 75 in Sweden, are unlikely to close as a result of the carmaker’s collapse because its production suspension since March allowed them to adapt, Fredrik Sidahl, CEO of the FKG Swedish car-industry supplier association, said in a phone interview.


“All the suppliers have prepared themselves for this possibility,” Sidahl said. “Still, I’m worried about the future of Sweden’s auto industry.”


Volvo Car Corp., the Swedish automaker owned by Zhejiang Geely Holding Group Co., also doesn’t expect any big effects on component makers from Saab’s disappearance from the market, said Per-Ake Froberg, a spokesman at the manufacturer.


Saab’s creditors include the European Investment Bank, the investment arm of the European Union. The state’s collateral is enough to cover Sweden’s guarantee on the EIB’s 2 billion-krona ($290 million) loan, Bo Lundgren, head of the Swedish National Debt Office, said at the government press conference.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...