Saab: The end is nigh...

The Swedish car manufacturer is close to being declared insolvent, which will merely hasten the split with its ailing US parent company General Motors. Saab want the courts to appoint an administrator who can restructure the cash-strapped car maker and decide whether parts of the operation could survive independently of the US parent company.

There is no appetite within the Swedish government for offering General Motors any form of subsidy. Consequently, the GM subsidiary Saab is faced with bankruptcy. Discussions are already taking place on alternative uses for the Trollhättan works. Just as with Opel in Germany, the American parent company asked the Swedish government for assistance without coming up with concrete proposals for the future of its Scandinavian subsidiary. Saab has been up for sale since last year.

A few days ago, the stricken American automotive giant recommended to its loss-making Swedish subsidiary that it should file for bankruptcy. General Motors warned that Saab could go under before the end of the month if no state aid were forthcoming. The US parent is keen for Saab to become an independent company by 2010. At GM Europe, they are looking into the option of a takeover by Opel.