Saab files for bankruptcy protection

Swedish carmaker Saab has filed for protection from its creditors as management struggle to turn the company around

Saab has filed for protection from its creditors under Swedish law. Although not a surprise - the company has been lurching from crisis to crisis for several months - the announcement marks the beginning of what might be the final chapter in the Swedish manufacturer's history.

The move gives Saab another chance to find the funding it needs to keep operating. The company's factory in Trollhattan last produced cars as far back as March, being idled after the cashflow crisis saw suppliers stop delivering parts. Since Saab has mortgaged its factory buildings, then there have been announcements of partnerships with two separate Chinese manufacturers - Pang Da and Youngman - but none of this has enabled it to restart production.

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 says that bankruptcy protection will allow it to restructure the business and get the lines working again, although the company's funding agreements with Pang Da and Youngman have yet to be approved by the Chinese government. The bankruptcy protection is initially for three months, but can be extended for another year under Swedish law. Saab has promised to give details of its reorganisation plan within three weeks. 

Saab GB - which is an separate company - issued a statement saying that it will continue to operate as normal and has 'sufficient funding in place to meet all creditor obligations, and will continue to pay all employees, dealers and suppliers as normal.'

Advertisement
Advertisement - Article continues below
Advertisement
Advertisement

Most Popular

Visit/best-cars/15095/best-cars-to-buy-for-ps10000-evo-garage
Best cars

Best cars to buy for £10,000 – evo garage

The evo team picks their favourite used performance cars
1 Jul 2020
Visit/audi/audi-e-tron/202840/new-496bhp-audi-e-tron-s-revealed-audis-first-high-performance-ev
Audi e-tron

New 496bhp Audi e-tron S revealed – Audi’s first high-performance EV

The Audi e-tron S has picked up an extra electric motor for a total of three in new EV flagship
1 Jul 2020
Visit/bmw/m3-saloon/20529/2020-bmw-m3-tech-specs-revealed-choice-is-the-word-for-bmws-sports-saloon
BMW M3 saloon

2020 BMW M3 tech specs revealed – choice is the word for BMW’s sports saloon

BMW’s next M3 to be available in manual or auto; with and without all-wheel drive
1 Jul 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