On the morning of December 19, Saab and Saab Powertrain have filed for bankruptcy with the Swedish courts. This is the conclusion reached after Youngman has announced further funding will stop, thus putting an end to the reorganization process. In turn, the Chinese company’s decision was taken after all attempts of purchasing Saab were thwarted by General Motors.

In the wake of this announcement, Swedish Automobile, Saab’s parent company, took the necessary step to file for bankruptcy, considering this will be in the best interest of its creditors, mostly suppliers. The Swedish court in charge of this matter will almost certainly approve the filing, and appointed receives of Saab will be known soon enough.

Swedish Automobiles stated that the company’s interest in Saab will be written off entirely because they don’t expect any value to be obtained from their shares. Early indications say that Victor Muller himself, boss of Swedish Automobiles, handed in the bankruptcy application.

Before this happened, it was hoped Youngman would buy Saab, and rebuild it into a luxury brand with the help of the entry-level 9-1, 9-6X sports crossover and 9-7 flagship sedan. If the Chinese company succeeded, a series of technologies owned by GM would have fallen into their possession.

GM had a number of preferential shares in Saab, and this weekend said it would not approve of any of the recently proposed solutions. That refusal was the killing blow that sent Saab in the arms of bankruptcy.
Some 3700 employees will have to find new workplaces.