SAAB Automobile filed for bankruptcy yesterday, giving up a desperate struggle to stay in business after previous owner General Motors Co blocked takeover attempts by Chinese investors.

But the deals failed, blocked by regulators or by GM, which was concerned its technology would end with Chinese competitors.

The final Chinese suitor, Zhejiang Youngman Lotus Automobile Co, said it pulled out after the last proposal for a solution was rejected by GM over the weekend.

"We were supporting them to the last moment, even up to 1am this morning we were discussing possible solutions by telephone, but due to GM's position, in the end Sweden's Saab filed for bankruptcy this morning," said Rachel Pang, an executive director of a subsidiary company of Youngman and daughter of Youngman's founder, Pang Qingnian.

Muller blamed the former administrator of Saab's reconstruction, Guy Lofalk, for the collapse of the talks, saying Lofalk had led the Chinese investors to believe they could become sole owners of the firm. Muller said he knew that was impossible given GM's concerns about licenses.

"Until this problem arose the relationship with GM was excellent," Muller said.