Saab Reaches End of the Line
Dec 20, 2011
Saab Automobile filed for bankruptcy Monday, marking the end of more than 60 years of making vehicles. The Swedish automaker’s owners “turned the company's assets over to a Swedish court-appointed receiver,” CNNMoney reports.
General Motors, who sold Saab to Swedish Automobile in 2010 as part of its own bankruptcy reorganization, blocked attempts by Chinese investors to buy the automaker, The Detroit News reports.
GM, who is still a minority shareholder in Saab, also “owns some technology licenses,” Businessweek reports. GM was supplying Saab with designs, engineering and parts for Saab vehicles and was reportedly worried “that its technology could end up in competing vehicles,” according to CNNMoney.
“Saab is seeking a true liquidation, meaning there will be no future buyers, and Saab will no longer make new cars,” Kicking Tires reports.
Saab hasn’t announced how the bankruptcy filing will affect the automaker’s network of 188 U.S. dealerships, but a spokeswoman said that “the company is still operating,” The Detroit News reports.
Kicking Tires says that if you plan to buy a new Saab, you’re taking a risk not only with the car’s warranty, as it may not be honored, but with its value, which will most likely plummet. They also note that parts will be hard to find, and if you plan to resell the vehicle, you won’t get nearly as much as if you were selling a comparable used car. The upside is that car shoppers who are willing to take these risks may be able to get a great deal on a new Saab.