Saab Automotive Files For Bankruptcy
Once Swedish automaker Saab has been owned and operated by General Motors for quite some time now. Despite hopes the previous buyout would save the company from financial peril, the automaker hit further trouble when the automobile industry fell on hard times a few years ago. Now at the feet of financial disaster and no chance of bailout, the company has announced it will file for bankruptcy.
Another One Bites The Dust?
Saab has been pushing for quite a while to resolve its financial troubles outside of the bankruptcy court, but with little help from financial firms the company began to seek another buyout option. Hoping to settle its troubles through a buyout by a Chinese autoparts maker, Saab officials were hoping they could avoid the impending filing.
General Motors decided against the Chinese buyout and vetoed the potential for a sale. Speculation points to the fact that Saab vehicles contain GM-owned intellectual property, which General Motors has no intention of sharing or displaying for fierce manufacturing rivals. For now the company is schedule to enter business bankruptcy court to resolve its debt troubles in hopes of coming out intact enough to remain somewhat relevant within the automobile market.