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GM's Saab Unit Files for Bankruptcy to Facilitate Spinoff or Sale

Swedish carmaker Saab, a subsidiary of General Motors (GM), has filed for bankruptcy protection to allow the unit to be sold or spun off. The Associated Press (AP) reports that the Swedish government had rejected a request from GM to allow finance the sale or spinoff with U.S. government bailout funds. In a statement quoted in AP, the company's  managing director, Jan Ake Jonsson, said, "We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal restructuring would be the best way to create a truly independent entity that is ready for investment," Saab says that pending court approval in Sweden, the reorganization will be executed over a three-month period and will require independent funding to succeed; a Swedish government official told news organizations that there will be no government bailout. Saab says it will continue to operate and plans to introduce new models during the next 18 months.

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