Monday, September 12, 2011

Saab's sob story continues

Swedish car manufacturer, Saab Automotives, has been making waves in the world recently with their current company state. Just last week, Saab admitted to being broke and filed for protection against creditors with the Swedish courts. The courts ruled to deny Saab this claim, which would be the second time they would have received it (the last one two years ago when they were under the GM banner). The court ruled that Saab did not have the supporting evidence that they would be able to restructure and climb their way out of debt.

Today, Automotive News reported that Saab has signed a technology license agreement with Chinese investors worth 70 million euros ($95.6 million). The agreement is said to be signed and sealed by Chinese car producer, Zhejiang Youngman Lotus Automobile as a way to guarantee the agreement is paid. While the notion of Chinese investors is nothing new to the story, the fact that a signed agreement means Saab might have some life in them after all.

Currently, two of Saab's white collar unions have filed a court petition in Sweden to have the manufacturer placed in bankruptcy. They have done so to allow for the unpaid staff of Saab to finally receive their back-pay. None of these employees have been paid for last August, when talk of bankruptcy became a reality. For now, Saab and it's many employees wait for a court to decide their fate. Whether or not the Swedish courts will approve Saab's please for aid is another story.

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