Yes, Saab Has Gone Out Of Business: Sold For $400 Million in 2012
After a long time of struggling, the Swedish automobile maker has finally decided to file bankruptcy and throw in the towel for good. As general Motors continued to lose money with the subsidiary, they realized in 2008-2009 that it was time to rid itself of this company. Selling the company to some counterparts of the Chinese even became an option.
While many companies that file bankruptcy are able to rebuild themselves and come back stronger, this is an unlikely outcome considering that the company is too small to survive in such a global market that is quite contemporary. Saab, which began in the year of 1945, seemed to suffer throughout its entire existence. In the year of 2012, two bids for a complete buyout were placed on the company.
The bids beginning at $300 million and taken all the way up to $400 million, June 2012 seemed to be the year that the bankruptcy estate was bought out by National Electric Sweden. Going back to the 1950s when at least 20,000 of this brand of vehicles were sold, no one would have expected bankruptcy to be the company’s final fate today.
Brief on History of Saab
In the 1960s, the Saab 96 became popular and eventually found itself the first brand to export over 550,000 units out of Sweden, This was the proof of their popularity in sixties. However, the Saab 99 became even more popular because it had some of the best features including side impact door beams, wraparound windscreen, headlamp washers and self repairing bumpers.
As the Swedish company began to shine, GM Motors came into the picture in 1989 and continued being there in 2010. When the companies came together to create their first product together in 2003, it was a complete failure commercially. When it was introduced in the year of 2005, it was scraped from the market soon after. As with the time the two companies continued to move on, they continued to fail at producing what the public was looking for.
Because of this, in 2008, GM Motors decided that the Saab brand needed to be under review because they found themselves owing to many fading fortunes associated with their business. After many bids to take over the brand, in 2012, they were finally bought out. Sweden has laws about bankruptcy which could mean that, this is not entirely the end of Saab since they were bought out off bankruptcy.
The plan for the company taking over the brand is that they produce pure electric vehicles of the 9-3 models that is will be available in the coming years. They also have dedicated themselves to producing a replacement for this model. GM Motors refuses to hand over the license for the 9-5 and 9-4x model which means that these brands will not be produced in the future.