Saab Declares Bankruptcy

GM vetoes deal involving Chinese company
By Kevin Spak,  Newser Staff
Posted Dec 19, 2011 7:19 AM CST
Saab's all-new 9-4X Crossover Arrives in Dealer showrooms.   (PRNewsFoto/Saab Cars North America)
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(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.

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