More G.M. Collateral Damage: SAAB files for Bankruptcy Protection

WRECKEDSAAB

By John Galt
September 7, 2011 – 07:58 ET

Ah the gift that keeps on giving, America’s bailout of General Motors which resulted in the spinoff of an attempt to create the perfect mesh of Abbamobile and American unions now leaves it’s Swedish counterpart in the dust.

From the Chinese news agency, Xinhua:

Swedish auto maker Saab files for bankruptcy protection

STOCKHOLM, Sept. 7 (Xinhua) — Swedish automaker Saab Automobile on Wednesday filed for bankruptcy protection as part of its attempts to reorganize its businesses.

According to a statement from the Swedish Automobile, owner of Saab, the automaker sent its reorganization application to the Vanersborg’s district court on Wednesday.

The purpose of the reorganization process was to seek short term stability, and open up for further financing in anticipation of expected funds from Chinese firms Panda and Youngman who are interested in cooperating with Saab, the statement said.

Saab’s subsidiaries Saab Automobile Powertrain and Saab Automobile Tools are also covered by the reorganization.

The company also applied for government salary guarantee so that the workers can get their salaries paid.

Production at the Saab’s main plant in Trollhattan, western Sweden, has been at a standstill since April, whilst wage payments have been late for three months in a row. Thousands of employees have still not received their August salaries.

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