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Saab Fails To Get Investment, Goes Bankrupt
Saab wanted to become an independent carmaker and General Motors had agreed to help it find an investor. Several foreign carmakers especially from China showed interest in Saab but no deal could materialize. Saab which was running on borrowed help from General Motors could not sustain for long. Its sales plummeted even in its home country resulting in huge losses.
Saab began 75 years ago as a manufacturer of aircraft engines and moved on to build cars in 1947. It was a pioneer of several new technologies and has been credited to be one of the first users of seat belts and turbo charged engines. It was a fairly decent carmaker until General motors bought a stake in it in the 80s. GM completely took over Saab in the 1990 and there has never been a year where it could manage profits.
When General Motors found itself in neck deep trouble in the USA during the previous recession, it decided to offload some of its brands including Saab. It was not able to sell it to someone and then let it go to survive on iits own. The workers at Saab's plant requested the Swedish government to protect them but nothing substantial could be done. Even in investment by Spyker in 2010 ddid not last long enough.
When a Chinese company did approach Saab for a deal, it failed to pull through when General Motors refused to give away Saab's design licenses to the Chinese firm. Alas, a carmaker with a good history will now be part of just the history books. Saab still has assets worth over $3billion which will be sold off in parts. The biggest losers will be Saab's workers and engineers who were working hard to ensure Saab had a future.
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