Saab Automobile filed for bankruptcy on Monday after it hopes to be saved by Chinese investors turned out to be futile.

Saab and two subsidiaries filed for bankruptcy with the District Court in the Swedish town on Vanersborg, The New York Times informs.

The company's former owner, General Motors, retained an effective veto on any deal that aimed at saving the company by an infusion of cash by Chinese investors, including Zhejiang Youngman Lotus Automobile.

GM still owns some technology licenses for Saab and is concerned that its technology would end up in the hands of Chinese competitors.

Saab was acquired last year by Dutch entrepreneur Viktor Mueller, but his efforts to save the company by modernizing its line-up did not lead to effective results at a time of global financial turmoil.

Originally the automobile manufacturing division of Svenska Aeroplan Aktiebolaget (English: Swedish Aeroplane Limited), later known as Saab AB, Saab Automobile was acquired by General Motors in 1990.