Saab 'may go under'
Motor trades
19th February 2009
Swedish car giant Saab could go bankrupt in a matter of days, its US owner General Motors (GM) has said.
In a statement, the company said it hopes to reach an agreement for financial aid with the government of Sweden.
"Given the urgency of stemming sizeable cash demand associated with Saab operations, GM is requesting Swedish government support prior to any sale," the company added.
The warning about the future of Saab came after the company submitted a viability plan to the US treasury yesterday this week when GM also announced it intends to axe 47,000 jobs from its worldwide workforce of 244,000.
Founded in 1947, Saab is based in Trollhaettan and currently employs around 4,300 people.
Meanwhile, it has been reported that GKN, which employs around 42,000 people globally, is to axe 564 jobs in the UK as a result of the economic downturn.
The Society of Motor Manufacturers and Traders has said the move "highlights what the industry is going through at the moment".
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