Jump to content


SEARCH

1

BMW sues Saab Automobile Parts

By FaezClutchless on 28 Aug 2012

Attached Image

The Saab name might be no more and it seems like the saga that has embroiled the Swedish automaker is going to come to an end. But that might not be the case because BMW has sued Saab Automobile Parts AB for unpaid deliveries.

Attached Image

BMW has filed a US$3.2 million lawsuit at a Swedish district court against Saab Automobile Parts AB, the parts division of the now bankrupt automaker, for receiving parts and other engine components.

The original agreement between the two companies was signed in September 2010. In the agreement, it states that Saab Automobile AB will acquire engine parts and other components from BMW and also in the same agreement, Saab will work with BMW to develop and continue using a four cylinder engine for the Saab 9-3 sedan provided by BMW.

This lawsuit might encounter some problems. Firstly, Saab is bankrupt and has a debt of around US$2 billion and with only US$500 million worth of assets. Another interesting thing is that Saab Automobile Parts CEO, Lennart Stahl, has stated that Saab Automobile Parts never ordered or received parts from BMW and he felt that the company should not require paying the US$3.2 million amount.

BMW has spent the last one and a half years chasing Saab for the unpaid bill and Saab clearly does not have the funds to repay the German automaker. When Saab filed for bankruptcy, the company made its parts division as collateral to get state-backed guarantees for its loans in the European Investment Bank.

Some of us would remember that recently, Spyker launched a US$3 billion lawsuit against General Motors. Spyker claims that General Motors forced the Swedish brand to go under. And another interesting report is that the company which reportedly has bought Saab, National Electric Vehicle Sweden, has not close the deal yet and it might take several more months for it to happen. No reason was given on why the deal has not been completed.

It is clear that we are going to hear more interesting reports about the Swedish automaker in the near future.

Photo credit: Net Car Show

other news, europe, sweden and 7 more...

Viewed: 749 times

Related Blog Posts
FaezClutchless
Written by FaezClutchless
Some say that his blood is actually RON98 petrol and some say that his right foot weighs over 20kg. But all that we know about Faez is that he loves to drive and is a JDM enthusiast.



  • 1
Ruykava Aug 29 2012 02:00 PM
this is suing just to make sure BMW gets its claims known to the administrators. they likely don't expect to get any money back, but who knows - in the unlikely event someone steps in with some financing, BMW will get paid if there is sufficient money
  • 1
 
Car Makes

Please select a car make

Facebook Likes
   Featured Blog Post
Photo
Driving an old car with almost no modern features in it? Or just love adding new accessories for...
POPULAR BLOG POSTS
Photo
With a bit of quick thinking, this man hid his E30 BMW M3 in his living room when he heard Hurric...
Photo
The last and final LaFerrari will be built and auctioned off to aid the victims of the deadly ear...
Photo
The seven-time Formula One champion Michael Schumacher is still unable to walk, nearly three year...
Photo
Two-time world champion Fernando Alonso claims that current regulations have taken out all the fu...
Photo
The younger generation might wonder how and why COE for Singapore vehicles came about. Find out w...
   Lifestyle Articles