Law and Rights
Unpaid suppliers shut down the assembly line for lack of payment on overdue bills from Saab. The Saab Sweden plan got back to normal after a day long shut down that was sparked when suppliers refused to deliver parts because of outstanding bills that Saab hadn't paid. Saab officials said they were working to "resolve" the bills but the shut down may well be a sign of Saab's continuing financial problems, according to a recent article in the Detroit Bureau. After the GM bankruptcy in 2009 the Saab operation starting shutting down when the Spyker company came along and bought it up. Spyker was then a builder of low-volume supercars. Since starting back up again though, Saab has struggled to get back in the black and rebuild a dealer network that ended up being mostly empty buildings. Then, in February this year Spyker sold the operation to Russian businessman Vladimir Antonov and that was quickly followed by the announcement of a $200 million loss. Then, just weeks ago, the Saab CEO announced plans to retire. Talk about a sinking ship. The Russian businessman, though, says he thinks the company can make a profit as a low volume builder of cars. Problem is, of course, it has to keep those parts coming to stay in business. And that means paying suppliers. And that means selling cars to get the money to pay suppliers. And that means having a network of dealers. And that means having models of cars for them to sell. It's a vicious circle that so far hasn't been successfully mastered. We hate to see any car company go under, anytime. But GM and Chrysler certainly taught the American public that "business is just business" so when you get ready to buy a new car, be careful you don't end up sobbing over your Saab. Meanwhile, if you've got a lemon Saab, maybe you want to get rid of it quick - while there's still a company to try to get your money out of.
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- Is Saab Going, Going, Gone? Rumors Of Near-bankruptcy Circulate
Is Saab going, going, gone? Rumors of near-bankruptcy circulate as Saab delayed its release of the first half 2011 financial report which, obviously, will likely be printed with red ink. News reports say Saab missed another payroll and its suppliers still...
- Saab Is Tottering On The Brink Of Collapse - Financing Falls Thru
Saab breathed a sigh of relief a few days ago when it announced a deal with a Chinese automaker that would have Hawtai Automotive Group gobble up 29.9% of Saab and loan it more money, funneling to Saab $216 million. With the money, Saab was set to pay...
- Saab Factory Shut Down Again By Suppliers Who Aren't Getting Paid For Deliveries
and they aren't happy. For the second time in barely a week the Saab headquarters plant in Sweden has had the assembly line shut down by suppliers who refuse to deliver critical parts because they claim they haven't been paid for deliveries. Saab...
- Saab Lives, Thanks To Spyker Auto
Well, perhaps the turmoil of the last year is over for at least one of GM's orphaned brands, Saab. For 20 years GM has had control of Saab but it now has reportedly struck a deal with Spyker Cars NV, a Dutch sports car builder, for sale of the trouble...
- Dutch Luxury Car Maker Bids For Saab
First it was reported that any Saab sale was kaput. Then it was reported that a China company was mulling it over and a sale looked likely. Now, they say the Dutch are back in the buying game, as luxury car maker Spyker Cars NV was reported to be the...
Law and Rights
Saab is in trouble? Unpaid suppliers shut down the assembly line for lack of payment
Unpaid suppliers shut down the assembly line for lack of payment on overdue bills from Saab. The Saab Sweden plan got back to normal after a day long shut down that was sparked when suppliers refused to deliver parts because of outstanding bills that Saab hadn't paid. Saab officials said they were working to "resolve" the bills but the shut down may well be a sign of Saab's continuing financial problems, according to a recent article in the Detroit Bureau. After the GM bankruptcy in 2009 the Saab operation starting shutting down when the Spyker company came along and bought it up. Spyker was then a builder of low-volume supercars. Since starting back up again though, Saab has struggled to get back in the black and rebuild a dealer network that ended up being mostly empty buildings. Then, in February this year Spyker sold the operation to Russian businessman Vladimir Antonov and that was quickly followed by the announcement of a $200 million loss. Then, just weeks ago, the Saab CEO announced plans to retire. Talk about a sinking ship. The Russian businessman, though, says he thinks the company can make a profit as a low volume builder of cars. Problem is, of course, it has to keep those parts coming to stay in business. And that means paying suppliers. And that means selling cars to get the money to pay suppliers. And that means having a network of dealers. And that means having models of cars for them to sell. It's a vicious circle that so far hasn't been successfully mastered. We hate to see any car company go under, anytime. But GM and Chrysler certainly taught the American public that "business is just business" so when you get ready to buy a new car, be careful you don't end up sobbing over your Saab. Meanwhile, if you've got a lemon Saab, maybe you want to get rid of it quick - while there's still a company to try to get your money out of.
Burdge Law Office
www.BurdgeLaw.com
Because life's too short to drive a lemon.
Subscribe in a reader- Is Saab Going, Going, Gone? Rumors Of Near-bankruptcy Circulate
Is Saab going, going, gone? Rumors of near-bankruptcy circulate as Saab delayed its release of the first half 2011 financial report which, obviously, will likely be printed with red ink. News reports say Saab missed another payroll and its suppliers still...
- Saab Is Tottering On The Brink Of Collapse - Financing Falls Thru
Saab breathed a sigh of relief a few days ago when it announced a deal with a Chinese automaker that would have Hawtai Automotive Group gobble up 29.9% of Saab and loan it more money, funneling to Saab $216 million. With the money, Saab was set to pay...
- Saab Factory Shut Down Again By Suppliers Who Aren't Getting Paid For Deliveries
and they aren't happy. For the second time in barely a week the Saab headquarters plant in Sweden has had the assembly line shut down by suppliers who refuse to deliver critical parts because they claim they haven't been paid for deliveries. Saab...
- Saab Lives, Thanks To Spyker Auto
Well, perhaps the turmoil of the last year is over for at least one of GM's orphaned brands, Saab. For 20 years GM has had control of Saab but it now has reportedly struck a deal with Spyker Cars NV, a Dutch sports car builder, for sale of the trouble...
- Dutch Luxury Car Maker Bids For Saab
First it was reported that any Saab sale was kaput. Then it was reported that a China company was mulling it over and a sale looked likely. Now, they say the Dutch are back in the buying game, as luxury car maker Spyker Cars NV was reported to be the...