Business & Tech

Saab Files for Bankruptcy; Fate of 50 Royal Oak Headquarters Jobs Uncertain

The car company is awaiting approval from a Swedish court on its filing.

, which has its North American headquarters in Royal Oak, filed for bankruptcy Monday in a Swedish court.

The move, expected to be approved by the court Tuesday, leaves the future of the Royal Oak headquarters and the 50 jobs there uncertain.

"At this time we are still watching the situation evolve closely in Sweden," Saab spokeswoman Michele Tinson said Monday. "It's too premature … to determine our next step."

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Saab opened its North American headquarters in Royal Oak in the summer of 2010. The company previously was located in the Renaissance Center in Detroit.

The company has struggled, and recently sought to sell itself to Chinese investors as a last-ditch move to raise funds to survive, according to a report in The Detroit News. But the deal was blocked by its former parent,  General Motors Co., which provided key technology to Saab. GM refused to go along with the move, citing intellectual property concerns, The News reported.

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Saab CEO Victor Muller submitted the application to a court in southwest Sweden, the Associated Press reported.

There are a total of 204 Saab dealers in the United States and 16 of those are service only, Tinson said.

Tinson said if the bankruptcy is approved, it is possible the company will be sold. "That’s always an option," she said.

Royal Oak Mayor Jim Ellison said Monday morning that he had not spoken with the automaker and did not believe there would be vast impacts on the city.

“Obviously, if it closes down, we are going to lose the jobs here," Ellison said. "But once they opened up, we really didn’t have too much interaction with them."

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