Saab files for bankruptcy as GM vetoes China sale

SAAB, the marque beloved of designers and architects across Europe, has filed for bankruptcy in Sweden after General Motors, which bought the carmaker in 1989 but has since got shot of it, reportedly refused to countenance the transfer of technology licenses to China.

GM sold Saab to Dutch company Swedish Automobile in 2010, but retained preferential shares and licenses key technologies used in the high-end cars.

Since March, production at Saab has been all-but suspended and workers say they are still owed pay that was due at the end of November. The troubled company was in talks with Chinese manufacturers including Zhejiang Youngman Lotus Automobile, but the BBC reports that GM did not want a Chinese company to access its technologies.

Swedish Automobile said: "After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to complete the reorganisation of Saab could not be concluded.

"The board subsequently decided that the company, without further funding, will be insolvent, and that filing bankruptcy is in the best interests of its creditors."

Saab customers - typically designers, engineers and creatives - have a reputation for emotional involvement with their cars that surpasses even that of Volkswagen owners. This has led to the coining of the phrase ‘Snaabs’ - the really keen owners - who tend to drive a pre-GM Saab. Whether they will mourn the passing of their cherished marque or breathe a sigh of relief that Saab will not now be owned by a Chinese manufacturer is a moot point. ·