By Steve Goldstein
LONDON (Dow Jones) -- The Saab Automobile division of General
Motors on Friday filed for creditor protection after failing to get
funds from both the Swedish government and its parent.
"Pending court approval, the reorganization will be executed
over a three-month period and will require independent funding to
succeed," it said. Saab said it's seeking funding from both private
and public sources.
General Motors (GM) had warned of such a move in a filing to the
U.S. Congress earlier this week. GM said at the time that it wanted
Saab to be independent by 2010.
Saab has only made a profit once in 20 years.
Stephen Pope, chief global market strategist at Cantor
Fitzgerald Europe, said Saab's Detroit parent "oversaw the
destruction of the Swedish car company's soul."
He cited Saab's 9-3 model as an example, saying it's a Saab body
skin wrapped around the Vectra model of GM's mass-market brands
Opel and Vauxhall.
"Did GM really believe that a potential Merc or Beemer buyer
would have their head turned by a reskinned Opel?" Pope asked,
referring to the Mercedes unit of Daimler (DAI) and BMW .
Saab said its plan is to concentrate design, engineering and
manufacturing in Sweden, which it will present to creditors within
three weeks.
Saab will continue to operate as usual.
"We explored and will continue to explore all available options
for funding and/or selling Saab and it was determined a formal
restructuring would be the best way to create a truly independent
entity that is ready for investment," said Jan Ake Jonsson,
Managing Director for Saab Automobile, in a statement.
Trollhaettan-based Saab is not related to the publicly traded
Saab , which makes aircraft engines.