Saab, Swedish carmaker, has finally filed for bankruptcy. The move comes after it failed securing funds from some Chinese investors.
General Motors, shareholder of Saab, refused Chinese carmakers accessing to Saab’s technology licenses.
Saab’s production was suspended in its plants since April as the firm has struggled to pay its suppliers. By their side, workers have not been paid since last month.
Saab had been in takeover talks with some investors, including the Chinese Zhejiang Youngman Lotus Automobile. Both companies have agreed a takeover deal, but the intervention of General Motors caused the breakdown of the agreement.
After receiving the position of General Motors on the transaction, Youngman spokesperson said that the funding to complete the reorganization of Saab could not be concluded. General Motors sold Saab in 2010 to luxury carmaker Spyker, now renamed Swedish Automobile, but the Untied States automobile giant remains as a stakeholder and supplier.
Saab’s board subsequently decided that the company, without further funding, will be insolvent, and also that filing for bankruptcy was in the best interests of its creditors. Earlier this month, a Swedish court told Saab’s stakeholders to come up with a credible rescue plan or else file for bankruptcy.
Victor Muller, CEO at Saab, stated General Motor’s decision is a veto for Chinese investment and become the last nail in the coffin of Saab. He also added, there is still hope that the firm could be saved.
He argued there are parties out there that have expressed an interest in pursuing a possible acquisition of the company from bankruptcy.