Hundreds of staff working at UK car dealerships faced job uncertainty today after Swedish car giant Saab announced a protection-from-creditors strategy known as ‘reorganisation’.
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Saab, which is part of the General Motors empire, has more than 80 dealerships in the UK.
Saab has run into financial difficulties and announced today that it would ‘file for reorganisation under a self-managed Swedish court process to create a fully independent business entity that would be sustainable and suitable for investment’.
The reorganisation 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.
As part of the process, Saab will formulate its proposal for reorganisation, which will include the concentration of design, engineering and manufacturing in Sweden. This proposal will be presented to creditors within three weeks of the filing. Pending court approval, the reorganisation 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 reorganisation 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.
He went on: ‘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. Reorganisation will give us the time and means that help get these products to market while minimising the liquidity impact of Saab on GM.’
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© Press Association 2008
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