Saab files for bankruptcy

Saab’s long deathwatch seems to be at an end, with the news that the 74-year old car manufacturer has filed for bankruptcy in Sweden. The news comes less than a month since Saab’s British subsidiary went into administration.

Saab’s long deathwatch seems to be at an end, with the news that the 74-year old car manufacturer has filed for bankruptcy in Sweden. The news comes less than a month since Saab’s British subsidiary went into administration.

Saab’s crisis has been a long running one. It’s factory in Trollhattan shut down in March, after suppliers refused to supply parts before receiving payments they were already owed. And despite several efforts to rescue the brand – which led to the signing of a ‘memorandum of understanding’ with two Chinese manufacturers to take control – it hasn’t produced a car since then.

Subscribe to evo magazine

Subscribe today to have every issue of evo delivered straight to you. You'll SAVE 39% on the shop price, and get evo for its original cover price for a whole year!

Saab’s court-appointed administrator, Guy Lofalk, applied to end the company’s ‘reorganisation’ earlier in the month, saying the company had no realistic chance of raising more money any time soon. Swedish Automobile, Saab’s parent company, then attempted to have Lofalk removed from his role, saying that it was still in negotiations with Youngman Lotus Automobile to secure funding. The bankruptcy filing seems to be an admission from both Swedish Automobile and its boss Victor Muller that time has run out.

Attempts have already been made to cast Saab’s former owner, GM, as the villain in its final demise – for refusing to allow the technology that it licenses to Saab for the construction of the 9-5 to pass onto a Chinese manufacturer. But there were other major problems that may well have proved fatal, including the withering of Saab’s sales network as the production shutdown continued. Saab sold just 31,500 cars last year – and had acknowledged it would have to produce 120,000 to become profitable.

Advertisement
Advertisement - Article continues below

The question now is what, if anything, happens to Saab’s mostly-developed ‘Phoenix’ platform, which was set to underpin the new 9-3 as well as other forthcoming models. 

Advertisement
Advertisement

Most Popular

Visit/bentley/bentayga/201999/2020-bentley-bentayga-revealed
Bentley Bentayga

2020 Bentley Bentayga revealed

Bentley’s Bentayga SUV has been given a big refresh, with a new look, interior and tech
30 Jun 2020
Visit/honda/civic-type-r/202819/fk8-honda-civic-type-r-fettled-by-mugen
Honda Civic Type-R

FK8 Honda Civic Type R fettled by Mugen

Japanese Honda tuner Mugen has released a handful of parts for the latest Civic Type R 
29 Jun 2020
Visit/lamborghini/202829/tecnomar-launches-4000hp-v12-lamborghini-yacht
Lamborghini

Tecnomar launches 4000hp V12 Lamborghini yacht

The V12-powered yacht is Tecnomar’s most capable offering yet, and takes inspiration from Lamborghini’s most recent models
30 Jun 2020
Visit/bmw/i8/202821/bmw-i8-reaches-the-end-of-production-here-are-the-final-18-cars
BMW i8

BMW i8 reaches the end of production – here are the final 18 cars

As the final i8 rolls off the production line in Germany, BMW celebrates with 18 unique examples
29 Jun 2020