Talk about kicking someone when they’re down. BMW is bringing Saab Automobile Parts AB, the parts branch of the now-bankrupt automaker with the same name, to court for receiving parts and other engine components and not paying the $3.2 million bill. The original agreement was signed back in September of 2010 which stated that Saab Automobile AB would purchase engine parts and other components. As part of the same agreement, Saab also would work with BMW to develop and continue to use a four-cylinder engine for the 9-3 sedan provided by the German automaker. The problem now is that Saab filed for bankruptcy last December, and is already in debt to the tune of $2 billion with only $500 million in assets.
If that’s not enough, here’s another interesting twist; Saab Automobile Parts CEO Lennart Stahl believes his company shouldn’t be on the hook for the parts Saab Automobile ordered. Stahl states that Saab Automobile Parts never ordered or received any parts from BMW, and therefore shouldn’t be obligated to fork over $3.2 million big ones. BMW has been chasing Saab for the past year and a half for the unpaid tab, but the Swedish automaker is looking at all of its options mostly because it doesn’t have any funds with which to repay BMW. As part of its bankruptcy filing, Saab Automobile put its Saab Automobile Parts shares up as collateral to get state-backed guarantees for its loans in the European Investment Bank. The Swedish National Debt Department, the branch that guaranteed Saab’s loans, has the power to sell Saab Automobile Parts AB and plans to do so in order to collect Saab’s debt.
In a last ditch attempt to resurrect the Swedish automaker, Spyker N.V., the parent company of Saab Automobile AB before its bankruptcy, has brought a $3 billion lawsuit against General Motors claiming the American automaker forced Saab under. Stay tuned as more details unfold.
What say you? Should Saab Automobile Parts AB be on the hook for the unpaid tab racked up by Saab Automobile AB? Tell us what you think in the comment section below.
Source: Fox Business