Saab's Money Struggles Finally Lead It To File For Bankruptcy

After trying for months to be the little Swedish car company that could, Saab has given in and filed for bankruptcy amid long-standing money problems. The trouble started last March, and the company stopped making vehicles in April.

Reuters cites low 2010 sales figures as the beginning of the 60-year-old company’s troubles. Over the weekend, General Motors vetoed a plan that involved a Chinese investor, Zhejiang Youngman Lotus Automobile. GM used to own Saab, and they still license certain technology to the company, as well as having a small stake in the company.

Saab employs around 3,500 people at their factory in the Swedish town of Trollhattan, though the shutdown of the company would affect even more, including suppliers and others involved in business for the car company.

One long-time employee told reporters he was worried for the entire region surrounding Saab.

“We have had a long time to prepare ourselves for this, but when it happens it still hits you,” he said. “I know there will be much unemployment. Then there’s other issues, like exclusion and segregation. It will be a fight for jobs. It will have a massive impact.”

So take good care of your Saab if you’ve got one, as it’s unclear if they’ll ever be able to restart production on new vehicles after bankruptcy.

Saab heads for scrapyards as long rescue quest fails [Reuters]