Saab GB has voluntarily filed for administration threatening 120 jobs as its embattled parent still waits for a cash lifeline that will secure its future.
The British arm of Saab parent Swedish Automobile (Swan) made the move today (29 November) in a further sign of the automaker’s chronic financial problems and as unions wait for this month’s salaries to be paid.
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With immediate effect, David Dunckley and Daniel Taylor of Grant Thornton UK LLP have been appointed joint administrators of Saab GB, with the UK division scheduled to meet them this afternoon.
“It is up to the administrator to decide the next action,” a Saab GB spokeswoman told just-auto. “I am meeting the administator this afternoon. There are always continuing discussions with the investors regarding the sale of Swedish Automobile and Saab GB.”
Saab GB’s woes pile on top of Swedish union angst at continued unpaid wages that see key labour bodies still awaiting November salaries, although the Nordic country’s workforce has endured months of salary uncertainty already since the manufacturer stopped production in April this year.
There has been speculation the administrator appointed to oversee Saab in Sweden’s bankruptcy protection could review the situation as early as today if investment is not forthcoming, with the most likely source thought to be Chinese investors Youngman and Pang Da.
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By GlobalData“Following months of intensive negotiations and a long period of suspended production and tight liquidity situation at Saab Automobile, a voluntary decision has been taken to place Saab Great Britain into administration,” a statement from Saab GB noted.
Saab GB 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 Britain 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.
Blue collar union IF Metall legal adviser Darko Davidovic yesterday told just-auto it had a procedure in place should salaries not be paid, but that the adminstrator could look again at the situation if none were forthcoming.
“If they don’t have the money for salaries, they don’t have the money for anything,” he said.
