Trollhättan, Sweden – Saab’s board of directors announced they will file for reorganization, creating a fully independent company that will no longer be part of the General Motors organization.
The board will file under a self-managed Swedish court process, headed by an independent administrator appointed by the court who will work closely with Saab’s management team. As part of the process, Saab will formulate its proposal for reorganization, which will include the concentration of design, engineering and manufacturing in Sweden. Pending court approval of the proposal, the reorganization will require independent funding to be successful, and will be executed over a three-month period.
“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 of 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.”
Funding will be sought from both public and private sources. Saab will continue to operate as usual, with the Swedish government providing some support during this period. The company said the reorganization should have no impact on other GM operations.
General Motors Europe said that it will promptly establish a viable mechanism for the timely payment of suppliers’ claims toward Saab, and said it hoped the gesture would encourage suppliers to support the auto company’s effort to become a fully independent business.