(December 19, 2011) Saab Automobile filed for bankruptcy today and is on the brink of shutting for good after former owner General Motors rejected a rescue plan.

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 move sets the scene for the end of Saab's struggle to survive after months of hastily drawn up deals. The latest plan involving Chinese automaker Zhejiang Youngman Lotus Automobile was vetoed by GM, still a Saab supplier, over the weekend. Saab hasn't made a car in months.

General Motors was concerned that its technology would end up in the hands of Chinese competitors.

"After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded," Saab's Dutch owner, Swedish Automobile, said in a statement.

"The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors."

Muller 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.

Even as production stopped and salary payments were delayed, Muller fended off bankruptcy by selling the company's real estate and lining up financing deals with investors in Russia and China. He bought time by placing the company in a reorganization process under bankruptcy protection.

It is expected that the court will approve the filing and appoint receivers. Swedish Automobile "does not expect to realize any value from its shares," the company said.

Sources: Automotive News, media reports