Car-maker Saab files for bankruptcy
Monday 19 December 2011
Car-maker Saab has filed for bankruptcy, according to a Swedish court.
Victor Muller, chief executive of Dutch group Swedish Automobile, handed in the application in person today, the Vanersborg District Court court said.
In a statement, Swedish Automobile said it decided to file for bankruptcy after previous owner General Motors rejected all proposals presented to salvage the troubled brand on Saturday.
It said GM's position meant China's Zhejiang Youngman Lotus Automobile had pulled out of talks to continue to finance the company's reorganisation.
The court is expected to approve the filing and appoint receivers for Saab Automobile very shortly, Swedish Automobile said.
There is still a small chance the bankruptcy administrator could sell the brand, but experts say that would most likely involve chopping up the company into smaller parts.
Swedish Automobile said Chinese investors pulled out of attempts to finance Saab's reorganisation after their last proposal for a solution was rejected by GM, which sold the brand in 2010 but still owns some technology licenses.
The bankruptcy filing comes as a blow for the town of Trollhattan in south-western Sweden, where Saab employs 3,700 people at its factory.
Originally an aircraft maker, Saab entered into the vehicle market after the Second World War with the first production of the two-stroke-engine Saab 92. It soon became a household name in Sweden and in the 1970s it released its first turbocharged model - the landmark Saab 99.
To car enthusiasts Saab was known for its quirks such as placing the ignition lock between the front seats and becoming the first car to sport heated seating in 1971.
- 1 School playground evacuated over 'unusually aggressive' grey squirrel
- 2 Hollywood actor Mickey Rourke beats opponent 33 years his junior in exhibition boxing match
- 3 Jennifer Lawrence scores first UK top 40 single with Hunger Games track 'The Hanging Tree'
- 4 Today was a bad day for renters, landlords, and democracy
At least 100 dead after Islamists launch attack on Nigerian mosque
Hollywood actor Mickey Rourke beats opponent 33 years his junior in exhibition boxing match
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Russell Brand: 'Katy Perry? I don’t know who that is'
Obama: The only people with the right to object to immigration are Native Americans
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
David Cameron sets out immigration reforms: We should distrust Ukip and their 'snake-oil of simple solutions'
Ukip mocked after mistaking Westminster Cathedral – for a mosque
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
iJobs Money & Business
Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...
£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...
£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...
£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...