Saab declares bankruptcy

The news comes after Youngman, the Chinese company which promised to pay for the carmaker’s restructuring efforts last week, informed Saab that it cannot provide the funding necessary for the continuation of the process. With former owners General Motors also vetoing any proposed plan for a takeover, the Swedish carmaker has now become insolvent without funds, thereby filing for bankruptcy.

Saab had been facing a troubled existence over the past few years, after former owners General Motors sought to dispose of the company in 2009 when GM itself declared bankruptcy. Swedish supercar maker Koenigsegg saw a deal to take over the company collapse, but Saab soon found another owner in Dutch carmaker Spyker.

However, things took a turn for the worst in April 2011, when Saab halted car production due to unpaid suppliers refusing to provide parts. The standoff soon spiralled into unpaid workers, and Saab struggled to search for investors. Chinese companies Pang Da and Youngman appeared to hand Saab a lifeline, but GM, which remained a shareholder as well as a platform and parts provider, vetoed any deal that involved the Chinese and the transfer of its licensed technology to them. As a result, the deal fell through again, leading to Saab’s declaration of bankruptcy.