AM Online

Saab GB enters administration as financial crisis peaks

Administrators from Grant Thornton have been appointed to Saab Great Britain, the UK's national sales company for the Swedish brand.

The company said it has entered a voluntary administration following months of suspended production and tight liquidity at its global parent, Saab Automobile AB.

The RMI National Franchised Dealers Association has responded that it is in contact with the Saab Dealer Council and will update dealers regarding the current situation.

Sue Robinson, NFDA director, said: “We urge our members with Saab dealerships to get in contact to talk through what steps they now need to take. We have access to expert legal advice and are here to help."

With immediate effect, David Dunckley and Daniel Taylor of Grant Thornton UK LLP have been appointed joint administrators of Saab GB.

Daniel Taylor said: "The administration is a consequence of the problems of the holding company in securing finance as well as stoppages in production.

"It is clear that the key to ensuring a future for Saab is the financial restructuring of the wider Saab Group, whose directors we understand are currently in negotiation with potential Chinese automotive concerns.

"Further announcements will follow as soon as possible."

The main creditors of the two companies are GMAC UK, which provides finance to Saab GB as well as offering financial services through Saab’s dealership network, and the Saab Pension Fund.

Saab GB, a 100% subsidiary of Swedish Automobile N.V. ("Swan"), has exclusive rights to distribute Saab cars and parts in the UK.

It employs 55 people in Milton Keynes and distributes the cars and parts to a 58 strong dealer network across the UK of which 20 are "Saab only" sites.

Saab City, a wholly owned subsidiary of Saab GB employing 65 people, operates two Saab motor dealerships, one in Wapping and a smaller site in Fulham.

Taylor added: "The Saab City sites will continue to trade normally for the time being whilst we review the operations, prospects, and options. Unfortunately we cannot rule out the possibility of redundancies.”

Saab GB's statement added: "The board of Saab GB is of the opinion that administration gives the company and creditors the necessary legal protection until it has secured the required funding for the company. The appointment of the administrator is effected by the directors of Saab GB."

Swan continues discussions with potential investors regarding a sale of Saab Automobile and Saab GB.

 



If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

  • Fordist - 29/11/2011 16:56

    Is that a surprise? The reports were of an ailing business long ago, so it should be 'well done' for continuing... but would it have been fairer to stop earlier? Fleet buyers that had not deserted must be a little worried. Very sorry for the staff - I heard they are a dedicated group.

    Reply as guest

    Login  /  Register