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GENERAL MOTORS

Last-ditch Swedish effort to save Saab

A Swedish Government delegation has flown to the United States to coax General Motors into considering latest bids to keep its ailing Saab Automobile unit alive and running. The automotive giant announced on Friday that it had commenced formal liquidation proceedings of the Swedish-based brand.

Last-ditch Swedish effort to save Saab
Saab owners and enthusiasts gather near GM headquarters in Detroit, Jan. 5, 2010

Leading the delegation is Jöran Hägglund, Swedish state secretary for industry. Before leaving for Detroit, he told the Financial Times he was surprised that GM decided to launch liquidation in light of fresh offers to buy the brand.

One group includes Bernie Ecclestone, the Formula One boss. Another group is led by the boutique Dutch sports car maker Spyker Cars which has been negotiating with GM for several weeks.

Swedish media has reported a third bid approach by Swedish business leaders led by Jan Nygren, a former cabinet minister.

Hägglund told the Financial Times “we still hope there is a chance of a deal, but every day that passes makes it harder. GM is working on a two-track process, and one of those tracks is the wind-down.”

In a earlier statement, Hägglund said that “we will see what we can do, in order to, if possible, contribute to a possible sale of Saab.” A GM spokesman said that the company would seriously consider new bids while also proceeding with liquidation. GM CEO Ed Whitacre has said he is not optimistic about Saab’s survival.

The Swedish Government has repeatedly stated it is prepared to provide loan guarantees if a suitable buyer is found. At stake are 3,400 jobs worldwide, mostly in Sweden where the storied brand is assembled. Purchased by GM in 1989, it has not turned a profit since 2001. In 2008 alone, it lost 3 billion kronor ($423 million). Last year GM said it wanted to sell Saab.

In addition to talks with GM, Hägglund will also meet with officials from Ford. It is selling its Swedish unit Volvo to Chinese carmaker Geely.

The Associated Press said there was speculation that a Wyoming-based group of investors may also be in the running to buy Saab, which was founded in 1937 as an aircraft company. After World War II it introduced the Saab car that was heavily influenced by aircraft designers.

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CARS

Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
 
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
 
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
 
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
 
All three suspects deny all the charges against them.
 

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
 
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
 
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
  
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
 
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
 
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
 
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.