• The Detroit News, Monday, December 19, 2011 9:44 AM

Saab Automobile filed for bankruptcy Monday after attempts by Chinese investors to take over the loss-making brand were blocked by previous owner General Motors Co.

Saab CEO Victor Muller personally handed in the bankruptcy application to a court in southwestern Sweden, ending his two-year struggle to revive the more than six-decades-old car maker, known for its rounded sedans and quirky design features.

The Vanersborg District Court was expected to approve the application later Monday.

While experts say the company is likely to be chopped up and sold in parts, local officials in the town of Trollhattan, where Saab employs more than 3,000 people, were holding out hope that a new buyer would emerge to salvage the brand.

"Our absolute hope is that the bankruptcy administrator will aim for a solution where the company is sold in its entirety," Trollhattan Mayor Paul Akerlund said in a statement.

Muller, a Dutchman, used his luxury sports car maker Spyker Cars to buy Saab from GM in 2010, promising to restore its Swedish identity, but the company ran out of money just a year later.

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