Monday, December 19, 2011

Saab Files for Banktruptcy

What, No Bailout?

The Chicago Tribune reports that SAAB has filed for bankruptcy. As previously reported on this Blog, General Motors sold its stake in SAAB to Spyker, a manufacturer of high-end sports cars, for $74 million, in 2010. (GM had paid $725 million to buy a partial and then complete interest in SAAB and then ran the company into the ground. What a terrific return in investment!) Unfortunately, SAAB was not able to recover from GM's "stewardship" of its classic brand. Moreover, unlike GM, which received an ill-advised bailout, SAAB will apparently receive no such taxpayer handout. In fact, as reported on this Blog at the time, Sweden rejected calls for such a bailout the last time SAAB was in trouble.