Enter Honest John's Kit Competition An awesome prize is up for grabs every week | No thanks

Saab saved again

At the eleventh hour, Saab’s filing for voluntary reorganisation has been approved. It was initially declined but after an appeal it has been approved by the Swedish government.

The approval means that the company is protected against bankruptcy.

The Saab factory in Trollhatten, Sweden, has been dormant for most of the year following problems with cashflow - Saab were initially unable to pay suppliers, and eventually had insufficent funds to pay staff. Numerous requests were submitted requesting that Saab be declared bankrupt. 

Two Chinese auto companies have agreed to provide long term funding, but in the short- and mid-term the company has run out of money. 

The reorganisation will be overseen by an independent official, and involves improving the efficiency of all the construction processes, with the aim of reducing lead times.

Saab aims to have a new, cost effective business plan in place by the start of 2012, but whether it will be enough to save the troubled company in the long run remains to be seen. 

Comments

Add a comment

 

Ask Honest John

Value my car

Amount to borrow
Sorry. The minimum loan amount is £1000
To pay back over

My credit score

Best available rate 9.20%

Total repayment £9,304.93

Total cost of credit £1,804.93

£155.08

60 monthly payments

Apply now

Representative example

The Representative APR is 13.2% (fixed) so if you borrow £7,500 over 4 years at a rate of 13.2% p.a (fixed) you will repay £199.21 per month and repay £9562.20 in total.