It’s certainly been a dark week for Saab Automobile, as the Swedish carmaker, formerly owned by General Motors, filed for bankruptcy Monday after a deal with Chinese investors fell through due to opposition from GM.
In the wake of the disappointing news, Ally Financial said on Monday that it does not expect the bankruptcy to have a sustainable impact on its business. Ally, also formerly owned by GM, is the preferred financing provider for Saab vehicles in the U.S. and Europe. The Detroit-based lender will continue to service existing Saab customers who have loans or leases with Ally. The lender is taking steps to protect its interests during Saab’s bankruptcy, the company said.
In a last attempt at survival, Saab had been trying in recent months to receive cash from Chinese investors, including Zhejiang Youngman Lotus Automobile. Despite the attempt, among other efforts, GM turned down the deal in fear that it would be a conflict of interest for the manufacturer — because of its current relationships in China. According to analysts, Saab Automobile will be broken up and sold in pieces.
