In what’s turned into one of the most painful and drawn-out demises in automotive history, Swedish automaker Saab has filed for bankruptcy with a Swedish District Court. The move came after General Motors reaffirmed it would block any transaction to sell Saab to Chinese suitor Youngman, prompting Youngman to withdraw its funding offer. The move left Saab with no alternative except filing bankruptcy, which it deems to be in the best interests of its creditors.
As for the next step, the Court must approve the bankruptcy filing (which it will), and then receivers are appointed to oversee the dissolution of Saab. Saab’s parent company, Swedish Automobile, will write off its interest in Saab, and isn’t likely to realize any value from its holdings.
Beyond this, what happens to Saab is anyone’s guess. The eternally optimistic may point out that bankruptcy isn’t necessarily the end, but in Saab’s case it very likely is. There are rumors that a company is waiting in the wings to buy Saabs assets and re-launch the brand, but it’s likely that any company will face the same obstacles as Youngman.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
