The Swedish car company has faced a troubling few years. Since GM’s sale of the company to Spyker in 2010 a great many things have gone wrong for the company. Faced with decreased sales and unpaid bills, the company had to reach out to the Chinese market for support. While all appeared to be fine as crucial deal was readying to close, everything began to unravel, giving Saab just a week to set things right.
Certainly a tall order, the owners of the company have been given a week to provide the Swedish court a rescue plan or ultimately face bankruptcy proceedings. The company still owes both its employees and suppliers a great deal of money; money that needs to be paid in order for work to once more commence. Unions and companies alike have called in their debts and Saab may not be able to pay them back.
This new pressure arises out of the ashes of a deal with two Chinese firms Zhejiang Youngman Lotus Automobile, as well as a bank. The deal was recently blocked from taking place by the former owner GM. The company apposed the deal because of a transfer of intellectual property which might have negatively effected GM’s place in the auto industry. While the talks have not stopped between the Swedish automaker and the Chinese companies the scene continues to be tense. GM has repeatedly opposed the move, threatening to remove their support altogether from the ailing company.
Halting talks meant that the hope for funding has been severed. Already having entered bankruptcy protection in September, the three months original given to solve the issue are coming to a close. Indeed they are to sever all ties and go into liquidation if they do not comply with the courts wishes.
A company that has represented the country for decades, it has been a part of the country’s landscape. Indeed, the company and its 3,700 employees face gruelling times ahead. While everything appeared to be finally going there way, if a plan is not reached than this may very well be the end of Saab. They have until December 16th to come up with an idea or face the disastrous consequences.