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Liquidation 'the next step' for Saab

Date Added: 09/09/2011  

A major car manufacturer could be set to receive a winding up order, with liquidation on the cards due to their testing financial situation.

According to a report by BBC News, Saab has had an application to be protected from its creditors turned down, while trade unions are demanding it be declared bankrupt.

Thousands of people could be set to lose their jobs if Saab does go under, including the 3,700 people employed at the company's factory in Trollhaettan in Sweden.

"It's sad and I am sorry," says Tom Muller, an analyst with Theodoor Gilissen in Amsterdam. "They are nice cars and nobody ever said they weren't nice cars."

Saab was only able to sell 300,000 vehicles over the course of last year and in 2011 it is set to fall below the target of 120,000 models.

As well as all of the people employed directly by the manufacturer, it could be the case that hundreds of thousands of jobs would be lost in the supply chain unless Saab's chief executive Victor Muller can come up with a way to avoid being served with a winding up order.

He has been doing many deals with Chinese investors to sell stakes in the organisation, but the legitimacy of these agreements have been questioned by some corners.

The report pointed out Mr Muller - the chairman of Saab - also secured a large loan earlier in the year, but much of this money is currently tied down and the company will not be able to unlock the funds unless it meets certain goals - targets it seems unlikely to achieve.

Some of the models sold by Saab - which has a UK base in Bedfordshire - include the 95 Saloon, the 93 Sport Wagon, the 93 Convertible and the 93 X.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

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