Saab Officially Files for Reorganization

General Motors has just announced that its Swedish brand Saab will file for reorganization under a Swedish court process in order to become an independent company suitable for investment. In essence, the Swedish court will name an independent administrator that will collaborate with the Saab management team over the reorganization process. In addition, the Swedish automaker will have to submit all its reorganization, and count here design, engineering and manufacturing, to the court. The reorganization will be executed over a three-month period, Saab said in a statement.

“We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment,” said Jan Ake Jonsson, Managing Director for Saab Automobile. “With an all new 9-5, 9-3X and 9-4X all ready for launch over the next year and a half, Saab has an excellent foundation for strong growth, assuming we can get the funding to complete engineering, tooling and manage launch costs. Reorganization will give us the time and means that help get these products to market while minimizing the liquidity impact of Saab on GM.”

Meanwhile, Saab will continue to operate as normal, with none of the GM operations to be affected during the Swedish court process.

GM's Rick Wagoner earlier this month said that Saab may be forced to file for bankruptcy unless the Swedish government decides to approve a funding package to reorganize the business. Sweden said last December that it is willing to support both Volvo and Saab but insisted the country did not plan to buy a stake in any of the two automakers.