Saab

Varin Tsai / Flickr

Dutch car company Spyker is suing General Motors for three billion dollars over the bankruptcy of GM's former brand, Saab.

Spyker says GM illegally interfered with a sale of part of Saab, and claims it was that interference which caused Saab's bankruptcy. 

GM sold Saab to Spyker in 2010, with a stipulation that Spyker would have to obtain GM's permission to sell Saab to anyone else.

Spyker almost immediately ran into financial problems trying to keep Saab afloat.  

Saab filed for bankruptcy in Sweden on Monday after its former owner, General Motors, opposed a plan that could have bailed the company out. 

Saab developed severe cash flow problems almost immediately after GM sold it to a Dutch company, Spyker. Saab had to stop making cars this year while it sought new investors. 

The company found a buyer in China, but GM  said no to the deal.   

Selling the company triggered contract clauses that required GM to sign off on transfers of technology used in many Saab vehicles.

A GM spokesman said the company didn't want to lose control of its technology and allow Saab to become a competitor's shortcut into the thriving auto industry in China.

AutoPacific analyst Dave Sullivan says there's now little hope the quirky little brand can be saved.  

"[Saab] was a vehicle that could easily be seen on the road as a Saab," says Sullivan. "It could never be mistaken for anything else, and I think we’re losing an iconic design."

Saab sold only a few thousand cars in the U.S. last year.

U.S. Marshals

Saab files for bankruptcy

Saab Automobile filed for bankruptcy in Sweden this morning. The announcement came after officials from General Motors rejected support for a proposal designed to save the company.

From a Saab press release:

After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors.

Benton Harbor schools working to avoid an emergency manager

The Benton Harbor Area Schools are one of several entities in line for a possible state takeover by an emergency manager. State officials are expected to release findings of a preliminary review of the school system's finances this week.

Michigan Radio's Lindsey Smith reported on the cuts Benton Harbor Area Schools Superintendent Leonard Seawood, and members of the school board are proposing in hopes of avoiding a state-takeover:

He and the school board have agreed to close 2 schools and lay off 20 employees. Teachers have agreed to work for less money as the district and the union renegotiates a contract with concessions. Seawood is looking to get a 10-percent pay cut for teachers and increase their health care contributions to 20-percent.

The board agreed to demolish some old buildings and list others for sale. BHAS had already privatized bus drivers, custodians, grounds and maintenance and food service.

Protests at Lowe's in wake of "All-American Muslim" controversy

After Lowe's pulled its ad from TLC's reality show "All-American Muslim," protesters picketed outside a Lowe's store near Detroit this past Saturday.

From the Associated Press:

About 100 people gathered outside the store in Allen Park, a Detroit suburb adjacent to the city where "All-American Muslim" is filmed. Lowe's said this week that the TLC show had become a "lightning rod" for complaints, following an email campaign by a conservative Christian group.

Protesters including Christian clergy and lawmakers called for unity and held signs that read "Boycott Bigotry" and chanted "God Bless America, shame on Lowe's" during the rally, which was organized by a coalition of Christian, Muslim and civil rights groups.

Lowe's pulled the ads after it received pressure from the Florida Family Association. In a letter to advertisers, the group said the show was "attempting to manipulate Americans into ignoring the threat of jihad."

Saab Automobile AB filed for bankruptcy protection Wednesday.

Saab used to be owned by General Motors. GM sold the company to Spyker Cars in January of 2010.

From the Associated Press:

The owner of cash-strapped car maker Saab filed for bankruptcy protection on Wednesday in a last-ditch attempt to salvage a brand crippled by production stoppages, withheld salary payments and mounting debt.

Swedish Automobile, formerly known as Spyker Cars, said the move would buy it time to receive funding from Chinese investors, currently awaiting regulatory approval, and avoid bankruptcy.

The Wall Street Journal reports this is an attempt at reorganization, similar to Chapter 11 bankruptcy in the U.S.:

Saab Automobile has struggled with its finances for months. Production at its plant in the Swedish town of Trollhattan has been halted since April.

In a bid to solve its long-term funding needs, the car maker this summer signed agreements with two Chinese companies. But Saab will receive no money until regulators in China and Sweden approve the deal, so the company is still strapped for cash.