Car maker Saab files for bankruptcy

Swedish car manufacturer Saab has filed for bankruptcy after the chief executive of its parent company Swedish Automobile personally handed in an application to the courts.

The decision was made after talks with the brand's previous owner General Motors (GM) to save the beleaguered firm fell apart, according to a statement by Swedish Automobile.

Chinese firm Zhejiang Youngman Lotus Automobile had been financing the company's reorganisation but it says GM's decision has now made its position untenable.

The Vanersborg District Court in Sweden is now expected to approve the filing and appoint receivers for Saab Automobile.

Saab's first foray into the vehicle market came after the Second World War when the company, which started life as an aircraft maker. produced a two-stroke-engine Saab 92. Household name status in Sweden quickly followed and in the 1970s it released its first turbocharged model - the landmark Saab 99.

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