Fleet News

Saab GB files for administration

The directors of Saab GB have taken the decision to place the company into voluntary administration.

Saab GB, which operates as a subsidiary of Swedish Automobile, appointed David Dunckley and Daniel Taylor of Grant Thornton UK LLP as joint administrators with immediate effect.

The business 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.

A statement read: “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.”

At the end of October, Swedish Automobile received a conditional offer of 100 million euros (£88m) from Chinese investors Pang Da and Youngman for Saab, to be paid in several instalments. It is yet to receive any of the Chinese funding, suggesting that terms of the deal are yet to be finalised, and hence this latest measure to buy more time.

Grant Thornton's 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.

Swedish Automobile is continuing discussions with potential investors regarding the sale of Saab Automobile AB and Saab Great Britain Limited. Normal 0 false false false EN-GB X-NONE X-NONE

ALD, which took over the management of Saab Contract Hire in a deal that started in 2009, declined to comment on the administration.

Saab GB has enjoyed a relatively strong year in fleet with sales up year-to-October by 48% at 2,087. However, total sales are down almost 10% to the end of October at 4,554 units.

 



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