Unions file for Saab bankruptcy

Two powerful Swedish unions - Unionen and Ledarna - have filed for Saab bankruptcy.

The unions say their members haven't received any wages for August.

'This is not a situation any union member desires,' said Unionen's Cecilia Fahlberg. 'Above all, they want to continue to work for Saab. They are proud and loyal, but they also recognise that the union must take this step to ensure that they receive the compensation they are entitled in the form of pay security.'

The Swedish court has received the filing, but a judgment may take a few weeks.

The bankruptcy petition comes after Saab last week announced it wanted to reorganise under Swedish courts in order to protect itself from its creditors and secure short-term funding. However, this application was denied by the courts, prompting the unions to make the bankruptcy move. Saab has appealed the court's decision.

In a separate development, Saab announced this morning that it had signed a technology licence agreement with Swedish Automobile cooperatief U.A. (SPV) for 70 million euros.

The agreement relates to its Pheonix platform the platform on which the next 9-3 will be built.

Saab says that Youngman, the Chinese firm with which it had previously signed a long-term 245 million euro join-venture deal, has also signed a technology license transfer agreement with the SPV.

It's hoped that this injection of 70 million euros could provide Saab with enough short-term funding to allow it to continue until the joint-venture deal with Youngman and another Chinese car maker, Pang Da, is pushed through.