Troubled Swedish carmaker Saab has filed for bankruptcy after failing to secure fresh funds from potential Chinese investors.
General Motors (GM), which owns part of Saab, did not want Chinese carmakers accessing technology licences.
Production has been suspended at Saab’s main plant in Trollhattan, Sweden, since April as the company has struggled to pay its suppliers and workers have complained that they have not been paid since last month.
Saab had been in takeover talks with several Chinese companies, including Zhejiang Youngman Lotus Automobile.
The Swedish carmaker said the breakdown of these talks – following the intervention of GM – left it will little option but to file for bankruptcy.
“After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to complete the reorganisation of Saab could not be concluded,” the carmaker said.
“The board subsequently decided that the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors.”
Last week, the Dutch financial market regulator halted trading in Saab shares.
Earlier this month, a Swedish court told Saab’s owners to come up with a credible rescue plan or else enter bankruptcy.
Source: BBC News