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'We can bounce back': Trollhättan politician

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'We can bounce back': Trollhättan politician
Saab factory in Trollhättan, western Sweden.
12:08 CET+01:00
Hours after the announcement that Swedish automaker Saab has filed for bankruptcy, following a two years struggle to keep afloat, local politicians and Saab retailers are keeping a brave face.

"This is a very unfortunate situation about which I am devastated. But Trollhättan has managed a difficult situation before and I am certain we can bounce back," local council head for Trollhättan, Paul Åkerlund, said in a statement.

However, he refused to despair of the city's automotive industry, despite Monday's announcement.

”I know that there are those interested in buying the whole of Saab and to continue operations from Trollhättan”, said Åkerlund.

Åkerlund, who used to be the chairman of the IF Metall union at Saab, is planning to contact the bankruptcy administrator, still to be elected, in order to get more information.

However, the governing body of Trollhättan is officially ”distraught” over the announcement of Saab's demise.

The municipality has previously been in talks with the government about what could be done to combat the situation in the area in case of a Saab bankruptcy.

”We have conveyed several points which we believe are imperative and decisive for Trollhättan's ability to bounce back. As soon as the government come up with answers we will be presenting these together,” said Åkerlund.

At the Swedish Saab dealership association, however, they believe that the bankruptcy notice won't make a huge change for dealers or Saab-owners.

”Saab owners today have no reason to worry. They are our customers and we will continue to make sure that they are happy, both in the car they are currently driving and when buying something new,” said CEO Peter Hallberg.

”We haven't been selling cars recently so there is no difference there. Instead we hope and believe that the supply of spare parts will be better after the bankruptcy, as some of the suppliers have been holding the auto parts company hostage and perhaps not been delivering the way they should,” he continued.

According to Hallberg, the recent developments did not come as a complete surprise and they are feeling secure with the guarantees and the spare parts they have.

News of Saab's bankruptcy filing left shares in parent company Swedish Automobile battered.

The company's stock price plummeted by about 66 percent on the Amsterdam exchange in morning trading following the announcement.

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