Saab files for bankruptcy

LONDON: A global break-up of GM, the cash-strapped carmaker, seems imminent as Swedish subsidiary Saab filed for bankruptcy protection, and is looking for alternative investors.

Saab's board decided on the move after the Swedish government turned down a request for more state aid, even as GM's German entity Opel, appealed to the German government to buy in to the company and said it needed more money. The German chancellor has said it is waiting to see what plans GM presents before deciding on Opel's request.

GM is sacking 47,000 staff worldwide, including 26,000 overseas and negotiating for billions of dollars from the US government to stave off bankruptcy.

The move has put the future of Vauxhall, GM's already battered British subsidiary into question, with unions going into frenzy of appeals to the UK government, as well as its other European and overseas entities.

As local pressures for government intervention to save local jobs rises in every country, the prospect of a dramatic break-up of the world's second largest auto company is looming.