Saab In Serious Trouble As Sweden Refuse To Support

Thursday, 5. March 2009

Car maker Saab, owned by struggling US manufacturer General Motors has filed for bankruptcy protection in Sweden whilst they look for a new parent. The Swedish government refused to match the $420 million investment that was offered by GM in order to turn the company around. GM would only provide the money if the Swedish government matched it. As the government was not prepared to risk tax payers money the company is likely to end up going to the wall. As a result of this move we could see all of the dealerships in the UK fail also so it is a worrying time. Another effect is the withdrawal of finance for Saab product. As soon as the news was announced every one of the funders that I use withdrew their finance and leasing facilities on Saabs. Hopefully they will pull back from the brink. By Graham Hill