ROYAL OAK, Mich. ─ Saab Cars North America (SCNA) announced it will pursue an out-of-court solution to keeping its operations running after its Swedish parent was declared bankrupt last week.
The SCNA board of directors agreed last week to hire McTevia & Associates, a nationally recognized financial advisor to companies in transition, to oversee the company’s out-of-court efforts.
“The SCNA Board’s decision to explore all possibilities out of court is the most appropriate direction to take for customers, dealers and creditors,” said Tim Colbeck, president and COO of SCNA. “By having an experienced, outside administrator oversee the process, the interests of all parties are better served.”
The 64-year-old carmaker’s Saab Automobile AB, Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy on Monday, Dec. 19. The company had been suffering through cash problems since March.
The carmaker’s North American operation is currently working on a solution that would provide warranty coverage for the company’s 2010 and 2011 model-year vehicles. GM said it will honor Saab warranties for 2009 and older model-year vehicles.
SCNA said it also is investigating all options aimed at reinstating its parts business in North America. Company officials added that Saab Parts Company in Sweden remains operational and is not impacted by the bankruptcy.
In 2009, General Motors, which tool full ownership of the brand in 2000, decided to sell the carmaker after the financial crisis. The brand was sold to Swedish Automobile, then called Spyker Cars, in January 2010.