Military Loan

Zeewolde, Netherlands (AHN) – Cash strapped car maker Saab Automotive filed for bankruptcy Monday nine months after halting production due to lack of funds.

The filing follows former owner General Motors’ objections to a substantial investment from China’s Zhejang Youngman Lotus Automobile Co., that could have saved the 74-year-old brand.

In a press release the company said, “After having received the recent position of GM on the contemplated transaction with Saab Automobiles, Youngman informed Saab Automotive that the funding to continue and complete the reorganization of Saab Automotive could not be concluded. The Board of Saab subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interest of its creditors.”

Saab began in the town of Trollhättan in 1937 as Svenka Aeroplan Aktiebolaget to manufacture military aircraft. It diversified into cars in 1945. GM bought a 50 percent stake in the company in 1990 and took complete ownership in 2000. In 2010 Spyker Cars bought Saab from GM. The company filed for reorganization in 2009.

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