Saab faces unions' bankruptcy action

Swedish Automobile's chief executive Victor Muller
Image caption Victor Muller could be losing his battle to save Saab

Two Swedish unions have applied for Saab to be declared bankrupt because the troubled carmaker has been unable to pay wages to its workers.

Last week, Saab's application for protection from its creditors to help it avoid bankruptcy was rejected by a Swedish court.

At the time, unions said they could demand that Saab be declared bankrupt.

Saab has been trying unsuccessfully to get new funding to ensure the business's survival.

It has been struggling with falling sales and was forced to suspend production in April. Workers are still awaiting their August salaries.

"A bankruptcy application is a way to make sure that our members are not left without the money they have the right to," said Unionen boss Cecilia Fahlberg.

"This is not a situation that any member of Unionen wishes to be in."

Other unions could follow Unionen and Lederna in calling for Saab to be made bankrupt.

Chinese investment

Swedish Automobile, formerly called Spyker, bought Saab from US giant General Motors in January 2010.

Before the summer, Swedish Automobile announced that two Chinese firms would buy minority stakes in the company.

However, these deals have not yet had regulatory approval in either Sweden or China.

They also need to be approved by the European Investment Bank (EIB).

Under the agreements, Zhejiang Youngman Lotus Automobile plans to pay 136m euros ($186m; £117m) for a 29.9% stake, while Pang Da Automobile will pay 109m euros for 24%.

Analysts have cast doubt on whether the Chinese government will approve the investments.

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