UPDATE: GM's Saab Expects To Be Sold By End Of June
06 April 2009 - 2:48PM
Dow Jones News
Saab Automobile AB, which owner General Motors Corp. (GM) is
trying to sell, has more than 20 suitors and expects to be sold
before the end of June, the struggling Swedish car maker told a
Swedish court Monday.
The Vanersborg district court Monday granted Saab an extension
of its reconstruction period. The carmaker met with creditors in
court and argued successfully that it shouldn't immediately be
forced into bankruptcy since it stands a chance of being sold and
becoming profitable. Saab, fighting for its survival as its equally
struggling parent company has said it seeks to unload its Swedish
unit this year, had filed for bankruptcy protection Feb. 20. Saab
told the court it needs about $1 billion in the near future in
order to continue production at its main plant in Trollhattan,
Sweden, and to be able to launch the new models it has
developed.
Of that $1 billion, $600 million would be a loan from the
European Investment Bank and $400 million would consist of GM
writing off loans and providing support for production of the new
car models, Saab said.
Saab said it estimates selling 150,000 cars in 2011. It sold
93,000 cars in 2008.
Saab didn't identify any potential buyers, but said in documents
filed with the court that "currently there are more than 20
actively interested parties." It said the management's presentation
to the parties will begin "shortly" and the sales process should be
completed by the end of June.
A Swedish government official who is the state's liaison with
the auto industry told Dow Jones Newswires last week he thought
some rival carmakers may be feigning interest in buying Saab to get
access to its books and research and development plans.
The official, Joran Hagglund, said he believes Saab has three to
five "serious" suitors. He said this might not be enough to save
Saab, as the industry currently is in "freefall" and any buyers now
may have several troubled carmakers to choose from.
In March Saab said it would lay off one fifth of its
4,100-strong workforce.
Saab said Monday it plans to roll out its new 9-3X model later
this year, the 9-5 sedan in 2010 and the 9-4X in 2010.
Company Web site: www.saab.com, www.gm.com
-By Ola Kinnander, Dow Jones Newswires; +46-8-5451-3097;
ola.kinnander@dowjones.com