Swedish Carmaker Saab Declares Bankruptcy

VOA Breaking News
December 19, 2011 at 9:45 am

Swedish automobile maker Saab has filed for bankruptcy after a final attempt to remain viable failed when former owner General Motors blocked a rescue deal by Chinese investors.

Saab officials submitted the bankruptcy documents Monday. Saab’s current owner, Swedish Automobile, bought the company from GM in 2010. They said without further funding, the company will be insolvent and filing for bankruptcy is in the best interests of its creditors.

GM, which bought 50 percent of Saab in 1989 and gained full ownership in 2000, still owns some of the technology licenses for Saab and did not want them to end up owned by its Chinese competitors.

General Motors rejected a final proposal over the weekend, saying the deal would be detrimental to its shareholders. Shortly after GM’s announcement, Chinese carmaker Zhejiang Youngman Lotus Automobile pulled out of the deal.