GM unit Saab files for bankruptcy protection, to be spun off as separate company
Officials say automaker Saab filed for bankruptcy protection Friday and has applied to be spun off from its parent company General Motors.
spokeswoman Margareta Hogstrom said an application to reorganize the Swedish-based unit was filed at a district court in Vanersborg, in southwestern Sweden. The move comes after the Swedish government rejected a request from struggling GM to inject money into the carmaker.
GM has been looking for buyers for Saab but said it needs more funding to put the brand up for sale. Saab's managing director says the company has determined a restructuring process similar to Chapter 11 bankruptcy in the U.S. would be the best way to make the automaker independent
Saab said the reorganization would take about three months and require additional funding to succeed.
On Wednesday the Swedish government rejected GM's plea for state funding for Saab, saying it was up to the U.S. automaker to save the brand.
GM said it needed about US$6 billion in support from the governments of Canada, Germany, Britain, Sweden and Thailand to provide liquidity for its operations in those countries.
