General Motors' Swedish Saab brand filed for bankruptcy protection yesterday and its German Opel unit was seeking more emergency state aid as the US carmaker's financial woes rebounded in Europe. The move came after Sweden's government ruled out a bail-out for Saab on Thursday and GM signalled this week that it was willing to loosen or even sever ties with some of its European operations to stay afloat.Saab said it had applied for protection from creditors while seeking to restructure its debts and seek funding. "We are now recreating Saab Automobile as an independent unit," said Jan-Ake Jonsson, managing director of the marque, which GM bought in two parts in 1990 and 2000. "The road ahead will not be easy."
GM said yesterday that Saab needed $1bn to shore up its balance sheet and launch two vehicles. The carmaker said it had agreed to put up $400m but needed another $600m of loans or guarantees from the government. Sweden's government, which has approved SKr25bn ($2.9bn) of loans and guarantees for its motor industry, ruled out rescuing Saab, fearing the precedent it would set for other troubled companies.
Yo, Bambi, hear that?
GM's European arm this week said it would consider stake sales or partnerships with third parties for Opel and Vauxhall, GM's UK brand. Opel has four plants and 25,000 employees in Germany. GM had until recently dismissed the notion of selling Opel, which like Saab is an integrated part of its global operations. However, the worsening outlook on car markets has caused GM to draw up bearish sales forecasts and rethink strategy. Opel is seeking more than €1.8bn ($2.3bn) in German state guarantees by 2011 to stay in business. Opel declined to comment.
It's a shame. A 1980s era Saab was a great ride.