Saab Files for Bankruptcy Protection

Saying that Swedish automaker Saab is in bad shape is the biggest understatement in the industry. Even if they solved their financial problems at this point, their image is so badly affected that it will take years to recover.

The latest and greatest bad news is that Saab has now filed for bankruptcy protection from its creditors and parts suppliers that have not been payed in a long time. In the wake of stalled investments from Chinese companies, Saab now faces a possible brake up of its assets in order to recuperate losses.

Saab said the "purpose of the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding," in a statement. Yet there isn’t much they can do in the absence of a helping hand.

"While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process," said Victor Muller, Saab CEO and Chairman in a statement on Wednesday. "The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market."

Even if these issues are dealt with, the company still needs to restart production and come up with a way to give credibility to its recovery.