GM's Swedish Saab division today received approval for reorganization in Sweden, saying that they'd need $1 billion to become self-financing. The Swedish process for reorganization requires companies to apply and subsequently be approved, though approval is given only to companies likely and expected to succeed in their plans.
The approval today shows confidence in the Saab brand and comes after two decades of foreign ownership. Parent company General Motors needs to divest Saab as part of their restructuring plan, though they continue to co-operate with Saab on some projects. Sources indicate that Saab and GM will be separated from one another by the end of the year.
According to Saab officials, the company reorganization is intended to create some short-term stability that will act as a launch-pad to creating a long-term solution. Saab lost well over $300 million last year and expects similar results for 2009.
"Today is the beginning of a new chapter in Saab's history", said Jan Åke Jonsson, Managing Director of Saab Automobile. "We are now recreating Saab Automobile as an independent unit. The road ahead will not be easy. Many have already suffered considerably as a result of the crisis in the automobile industry and sacrifices will be a part of our future, but after a period of tough decisions we will have laid the foundations for a new beginning.
photo:General Motors
 |
| Jan Åke Jonsson, Managing Director of Saab Automobile |
The approval today shows confidence in the Saab brand and comes after two decades of foreign ownership. Parent company General Motors needs to divest Saab as part of their restructuring plan, though they continue to co-operate with Saab on some projects. Sources indicate that Saab and GM will be separated from one another by the end of the year.
According to Saab officials, the company reorganization is intended to create some short-term stability that will act as a launch-pad to creating a long-term solution. Saab lost well over $300 million last year and expects similar results for 2009.
"Today is the beginning of a new chapter in Saab's history", said Jan Åke Jonsson, Managing Director of Saab Automobile. "We are now recreating Saab Automobile as an independent unit. The road ahead will not be easy. Many have already suffered considerably as a result of the crisis in the automobile industry and sacrifices will be a part of our future, but after a period of tough decisions we will have laid the foundations for a new beginning.
photo:General Motors