Feb. 20 (Bloomberg) -- Saab Automobile sought protection from creditors after parent General Motors Corp. said it will cut ties with the Swedish carmaker following two decades of losses.
Saab, based in Trollhaettan, will split from GM and pool resources in Sweden, Saab Chief Executive Officer Jan Aake Jonsson said at a press conference today. The reorganization, slated to take three months, will place Saab under court supervision with the aim of creating an independent business. GM first invested in the Swedish automaker in 1990.
Saab’s future remains in doubt, after GM said on Feb. 18 it wants to cut the unit loose by 2010, with financial aid from the Swedish government. Sweden has ruled out taking over Saab, saying taxpayers shouldn’t support the unprofitable company. Saab lost about 3 billion kronor ($341 million) in 2008 and will have a similar deficit this year, it said in court documents.
Saab, based in Trollhaettan, will split from GM and pool resources in Sweden, Saab Chief Executive Officer Jan Aake Jonsson said at a press conference today. The reorganization, slated to take three months, will place Saab under court supervision with the aim of creating an independent business. GM first invested in the Swedish automaker in 1990.
Saab’s future remains in doubt, after GM said on Feb. 18 it wants to cut the unit loose by 2010, with financial aid from the Swedish government. Sweden has ruled out taking over Saab, saying taxpayers shouldn’t support the unprofitable company. Saab lost about 3 billion kronor ($341 million) in 2008 and will have a similar deficit this year, it said in court documents.
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