Saab Declares Bankruptcy

GM vetoes deal involving Chinese company

By Kevin Spak,  Newser Staff

Posted Dec 19, 2011 7:19 AM CST

(Newser) – Saab finally threw in the towel today, after former owner General Motors once again vetoed a rescue plan involving China’s Zhejiang Youngman Lotus Automobile. Saab’s current owner, Swedish Automobile, filed for its bankruptcy, saying that "the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors." Saab hasn’t made any cars since April, thanks to growing debts, Reuters reports.

GM still licenses technology to Saab, and holds a minority stake in the company. It said it couldn’t continue to supply parts to Saab if it were owned by Youngman, because that would harm its own operations in China. Shares of Swedish Automobile, which had been suspended, plunged 62% today, all the way down to 8 euro cents.

Saab's all-new 9-4X Crossover Arrives in Dealer showrooms.
Saab's all-new 9-4X Crossover Arrives in Dealer showrooms.   (PRNewsFoto/Saab Cars North America)
Members of the media wait outside the Saab factory in Trollhattan, Sweden Friday Oct. 28, 2011.
Members of the media wait outside the Saab factory in Trollhattan, Sweden Friday Oct. 28, 2011.   (AP Photo/Erik Abe)
This file photo taken Feb. 23, 2009, shows the Saab logo at an auto dealership in Berlin, Germany.
This file photo taken Feb. 23, 2009, shows the Saab logo at an auto dealership in Berlin, Germany.   (AP Photo/dapd, Dorothea Tuch, File)
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