Saab’s financial rollercoaster seems to have come to what many have speculated would be its inevitable conclusion, with the Swedish automaker today announcing it has filed for bankruptcy with the District Court in Vänersborg, Sweden.
The news comes as Saab was seeking to reorganize, with the struggling car maker desperate to arrange funding. The most likely candidate had been Chinese automaker Zhejiang Youngman Lotus Automobile Co., which has now announced it can not move forward based on opposition from General Motors. GM opposed the sale to a Chinese automaker as it owns the technology behind two of Saab’s models and even manufactures the 9-4X crossover for Saab.
Representatives at GM have previously said the American auto giant would look to block any sale based on intellectual property issues, with concerns such a sale could harm its business in China.
“After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors,” reads a statement on the Saab website. Along with Saab Automobile, this filing includes Saab Automobile Tools AB and Saab Powertrain AB.