General Motors has enough problems. The company may be on the verge of a “pre-packaged” or “Controlled” bankruptcy.
Thus, it can’t worry about one of its failing divisions, Saab. So we guess the execs at GM have been buoyed by learning that there could be as many as 20 companies showing interest in buying Saab.
Saab made 93,000 cars in 2008 and filed for bankruptcy on February 20, 2008 in an effort to spin off from General Motors or put it in a position for GM to sell it. The company will be negotiating with creditors in June to write down its debt and the company has said that it will pay the remaining 25 percent of its debt in a year. It has also consolidated production to its plant in Trolhattan in Sweden and projects it will break even with a production of about 130,000 cars. The company also plans to introduce three new models in 2009 and 2010 and expects a positive cash flow in 2011.
Finally, Saab said it needs about $1 billion. Six hundred million dollars is expected from the European Investment Bank. It is expected that General Motors will provide $400 million.
Our take? So it appears that Saab could be in pretty good shape by the end of this year. That could be enough to entice someone to take the company off of GM’s hands.
via Detroit News