Sweden's struggling Saab ran out of room for manoeuvre today, as the car maker's Dutch owner called time on a nine-month battle to find a rescue plan and filed for its bankruptcy.
The end of the road for Saab, which has been making cars for more than 60 years, came at the weekend when General Motors again vetoed a plan involving Chinese investor Zhejiang Youngman Lotus Automobile.
GM, Saab's former owner, still licences key technology to it and has a small shareholding.
Saab owner Swedish Automobile said that after GM had informed Youngman it would not approve the plan, the Chinese company told Saab "the funding to continue and complete the reorganisation ... could not be concluded."
"The board of Saab Automobile subsequently decided that the company, without further funding, will be insolvent and that filing bankruptcy is in the best interests of its creditors."
Swedish Automobile said in the statement that it expected the court would approve the filing and appoint receivers soon.
Saab presented its first prototype in 1947 after moving out of aeronautical engineering and built a small, loyal following.
A separate Saab defence and security company still exists.
General Motors bought 50 per cent of the car company in 1990 and the rest in 2000.
It decided to sell the brand in 2009 after the financial crisis and came close to closing it before Swedish Automobile, then called Spyker Cars, bought Saab in January 2010.
But Saab began to face cash problems in March this year after 2010 sales fell short of target and it halted production.
It briefly restarted output at its plant in west Sweden, but mounting debts to suppliers caused another halt in April, since when it has not made any vehicles.
Swedish Automobile chief executive Victor Muller stitched together a series of deals to rescue Saab, but General Motors has said it could not accept an option involving Youngman.
Reuters