20 Dec 2011

Saab declared bankrupt

2:28 pm on 20 December 2011

Swedish car manufacturer Saab has been declared bankrupt by a court on Monday after attempts to secure rescue funds from China failed.

The company, which hasn't made a car for months, was attempting to strike a deal with the Chinese firm Youngman.

However Youngman pulled out after General Motors, which used to own Saab and still holds a stake, said it didn't want intellectual property passing to China.

The deal had been seen as the last chance to save the famous brand.

A Swedish court approved the company's bankruptcy application and appointed two receivers to run the company.

Saab's receivers will now decide what happens to the carmaker's 3500 employees in Sweden, while staff at suppliers and 850 showrooms around the world will also be waiting to hear about their fate.