GM puts Saab to the sword

Saab CEO Victor Muller has confirmed that the company has been placed in the hands of administrators with effect from late yesterday afternoon AEDT. The move followed a flat refusal from General Motors to allow a joint venture to go ahead between the iconic Swedish company and Chinese company Youngman.

"This morning, at quarter past nine, I filed for the bankruptcy of Saab Automobile and two subsidiaries," Muller said during a press conference yesterday. "There's no doubt that this is the blackest day of my career and the blackest day in the history of Saab.

"But unfortunately we had no alternatives; we had no options, because during the weekend, it turned out that General Motors, under no circumstances would approve any deal which involved Youngman, in spite of it being a transaction, which I submitted to General Motors, which involved zero per cent of shareholding by Youngman in Saab Automobiles, and the only thing that would be created was a convertible loan, by Youngman of €200 million in Saab — fully convertible in the event that Saab Automobile would no longer be dependent on GM's technologies.

"They would get no board seats at top level; they would get no influence; they would get no access to the technology of GM; they would not be involved in Saab Automobile. Saab Automobile would form a joint venture, which actually already existed... [through] which we develop all the new product on the basis of the Phoenix platform."

"However, on Saturday, General Motors... made it clear they would not approve of such a transaction.

"This morning, around 5am, we got a very clear statement that it really didn't matter how we structured the deal, but that they wouldn't agree. Having  submitted that statement to Youngman this morning, the conclusion was that it was simply too tricky to invest in the joint venture, and in Saab, through the loan."

"It was made very clear by GM that would enforce all of their contracts in place, with Saab, meaning — although they didn't that in so many words — termination of the licences for 9-3, 9-5, no production of the 9-4X. Basically you buy an empty factory for at least two years — and that's a very costly exercise.

Muller, visibly angry and by his own admission "devastated", carefully avoided pinning the blame on General Motors. In fact, he painted a picture of "harmony" and a "constructive" relationship between Saab and its former parent, but admitted that constantly "changing proposals" for acquisition probably hurt that relationship over time. Asked for his feelings about GM, Muller refused to provide a direct answer, but did say that "Everyone can draw their own conclusions".

The technology that GM didn't wish to have fall into Chinese hands through the Youngman joint venture comprised 10 per cent of the Phoenix platform, named for the concept car (pictured) that was to provide the basis for the next-generation 9-3. Youngman own some components of the Phoenix platform too.

Muller explained that there was still a possibility a buyer might acquire the company, but in the short term Saab could be considered dead in the water. Although the CEO had nothing but praise for the Swedish government and the respective legislation that allowed the company to survive as long as it had, he was scathing of the role played by Guy Lofalk, the administrator for the company. Facetiously describing Lofalk as "brilliant", Muller also indicated plans were afoot to seek legal action against Lofalk for the fees he had charged.

Saab Australia issued a statement today that read as follows:

The press conference can be watched in full at enthusiasts forum Saabs United.

While the Saab story looks like it ends here, it's a sure bet there's still some way to go.

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