General Motors Corp

GM unit Saab files for protection from creditors

By KARL RITTER, Associated Press Writer
Louise Nordstrom contributed to this report.

STOCKHOLM – General Motors Corp.'s Swedish-based subsidiary Saab filed for bankruptcy protection Friday so it can be spun off or sold by its struggling U.S. parent, officials said.

The move comes after Sweden turned down GM's request for government help for Saab.

An application to reorganize the Swedish-based unit was filed at a district court in Vanersborg, in southwestern Sweden, Saab spokeswoman Margareta Hogstrom said.

The Swedish government on Wednesday rejected a request from loss-making GM to inject money into the carmaker. GM, which is seeking help from the U.S. government to avoid bankruptcy at home, has been looking for buyers for Saab but said it needs more funding to spin off or sell the division.