GM's Saab Unit Files for Bankruptcy

TROLLHATTAN, Sweden - February 20, 2009; The AIADA newsletter reported that General Motors Corp.'s Swedish-based subsidiary Saab filed for bankruptcy protection Friday so the unit can be spun off or sold by its struggling U.S. parent, officials said.

The move comes after Sweden turned down GM's request for government help for Saab. According to MSNBC, an application to reorganize the brand was filed at a district court in Vanersborg, in southwestern Sweden.

The move would give Saab protection from creditors while it restructures in a process similar to a Chapter 11 bankruptcy in the U.S. "Pending court approval, the reorganization will be executed over a three-month period and will require independent funding to succeed," Saab said, adding it would seek funding "from both public and private sources."

Industry Minister Maud Olofsson told Swedish news agency TT it was "very hard to say what our role will be." On Wednesday, Olofsson rejected GM's plea for state funding for Saab, saying it was up to the U.S. automaker to save the brand.

For more on what the future holds for Saab, click here. Despite its internal turmoil, Saab will still debut the 2010 Saab 9-3x, a rugged-looking wagon, at the Geneva Auto show.Click here for its promotional video.

5 Great