Saab applies for bankruptcy protection

Swedish car maker Saab is filing for bankruptcy protection in a self-managed reconstruction process.

Owner Swedish Automobile, said Trollhattan-based Saab and its subsidiaries, are filing for a “voluntary reorganisation” at Vanersborg District Court today.

It cites Saab’s limited funds and says the move “is to secure short-term stability while simultaneously attracting additional funding”.

The brand has been plagued by production stoppages and problems to pay its suppliers and 3,700 staff for months.

Creditors have threatened to put it into bankruptcy unless it pays up.

Netherlands-based Swedish Automobile brought Saab out of a liquidation process by buying it from General Motors Co in 2010.