FT reported that General Motors' Swedish Saab brand has filed for bankruptcy protection and its German Opel unit was seeking more emergency state aid as the US carmaker's financial woes rebounded in Europe.

Saab said that it had applied for protection from creditors while seeking to restructure its debts and seek funding. Mr Jan Ake Jonsson MD of Saab said that "We are now recreating Saab Automobile as an independent unit. The road ahead will not be easy."

The move came after Sweden’s government ruled out a bail out for Saab and GM signaled this week that it was willing to loosen or even sever ties with some of its European operations to stay afloat. Sweden’s government, which has approved SEK 25 billion of loans and guarantees for its motor industry, ruled out rescuing Saab, fearing the precedent it would set for other troubled companies.

GM said that Saab needed USD 1 billion to shore up its balance sheet and launch two vehicles. It added that it had agreed to put up USD 400 million but needed another USD 600 million of loans or guarantees from the government.

(Sourced from www.ft.com)