Comments on: The New Bankruptcy Law: Information you Need to Know Before you File http://www.bankruptcy-questions.net/13/the-new-bankruptcy-law-information-you-need-to-know-before-you-file/ Bankruptcy Question and Answers Sat, 25 Feb 2012 17:56:31 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: saab_9_3 http://www.bankruptcy-questions.net/13/the-new-bankruptcy-law-information-you-need-to-know-before-you-file/comment-page-1/#comment-4 saab_9_3 Mon, 09 Nov 2009 18:09:59 +0000 http://www.bankruptcy-questions.net/bankruptcy-file/the-new-bankruptcy-law-information-you-need-to-know-before-you-file#comment-4 This is actually pretty complicated but the end result was that GM had made the decision to sell Saab, and in order to do so, it was determined the easiest way was to "spin it off" as an intenty of GM, let it declare bankruptcy independently, and then emerge from bankruptcy while selling it to new owners (primiarly, to get Swedish government help in the bailout - which up to now it has been balking although recently more open to investing in the new Swedish joint venture). Swedish laws are different than the US, and it was simipler to make it an independent company then to sell it as a part of GM. Saab has lost money every year except for one that GM has owned it. It was losing money when GM bought 50% of the company in 1990. I believe it made money for one year in 1995. Saab has suffered without enough investment since before GM bought 50% in 1990, and worse with GM's troubles after GM bought the whole company in 2000. If you are losing money every year, how do you develop new cars? GM recently made the decision to freshen the line and so Saab has a new 9-5 coming out now that is reported to be a very good, competitive car. The 9-3 was freshened and is a respectable car. A new 9-4 that is essentially the same car as Cadillac's new SRX (many of the parts are from Saab and only some are from GM powertrain - for example Cadillac is "borrowing" things such as a turbo-charged V6 and the all wheel drive system which were both developed in Sweden, not in Detroit) - so Saab will have a mostly new lineup by mid-2010. Saab's are selling very poorly right now due to the fear the company will go out of business, but the Swedish buyers (Koeningsburg and partners) seem very interested in keeping it going. Sales are down 60% in the USA in 2009, which is not good for any company. Marketing is not the problem, the economy and the perception of the company's future are two huge issues.<b>References : </b>Industry reports This is actually pretty complicated but the end result was that GM had made the decision to sell Saab, and in order to do so, it was determined the easiest way was to "spin it off" as an intenty of GM, let it declare bankruptcy independently, and then emerge from bankruptcy while selling it to new owners (primiarly, to get Swedish government help in the bailout – which up to now it has been balking although recently more open to investing in the new Swedish joint venture). Swedish laws are different than the US, and it was simipler to make it an independent company then to sell it as a part of GM.

Saab has lost money every year except for one that GM has owned it. It was losing money when GM bought 50% of the company in 1990. I believe it made money for one year in 1995.

Saab has suffered without enough investment since before GM bought 50% in 1990, and worse with GM's troubles after GM bought the whole company in 2000. If you are losing money every year, how do you develop new cars?

GM recently made the decision to freshen the line and so Saab has a new 9-5 coming out now that is reported to be a very good, competitive car. The 9-3 was freshened and is a respectable car. A new 9-4 that is essentially the same car as Cadillac's new SRX (many of the parts are from Saab and only some are from GM powertrain – for example Cadillac is "borrowing" things such as a turbo-charged V6 and the all wheel drive system which were both developed in Sweden, not in Detroit) – so Saab will have a mostly new lineup by mid-2010.

Saab's are selling very poorly right now due to the fear the company will go out of business, but the Swedish buyers (Koeningsburg and partners) seem very interested in keeping it going. Sales are down 60% in the USA in 2009, which is not good for any company. Marketing is not the problem, the economy and the perception of the company's future are two huge issues.References : Industry reports

]]> By: Matt http://www.bankruptcy-questions.net/13/the-new-bankruptcy-law-information-you-need-to-know-before-you-file/comment-page-1/#comment-3 Matt Mon, 09 Nov 2009 13:07:32 +0000 http://www.bankruptcy-questions.net/bankruptcy-file/the-new-bankruptcy-law-information-you-need-to-know-before-you-file#comment-3 <b>SAAB's situation right before it filed for bankruptcy?</b>I am trying to gather information about SAAB's information right before it filed for bankruptcy. I want to know stuff along the lines of: 1. what was going within the organization that led to the need to file bankruptcy 2. Why were the cars themselves not selling well? 3. What was wrong with their marketing efforts? SAAB's situation right before it filed for bankruptcy?I am trying to gather information about SAAB's information right before it filed for bankruptcy. I want to know stuff along the lines of:

1. what was going within the organization that led to the need to file bankruptcy

2. Why were the cars themselves not selling well?

3. What was wrong with their marketing efforts?

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