Swedish Automobile, the company that owns Saab, said on Tuesday its British unit had filed for administration as it awaits funding from Chinese investors.
"Saab Great Britain Ltd filed for administration with the High Court in London," Swedish Automobile said in a statement.
"The board of Saab GB is of the opinion that administration gives the company and creditors the necessary legal protection until the required funding for the company has been secured," the statement added.
Swedish Automobile said it is waiting for Chinese investor Zhejiang Youngman Lotus Automobile Co. to fulfill a conditional funding commitment for the payment of wages to the employees of Saab Automobile and for the continuation of activities at Saab GB.
Youngman and Pang Da Automobile Trade Co. signed a memorandum of understanding with Swedish Automobile five weeks ago to buy Saab for 100 million euros ($134 million), but the deal has hit objections from General Motors Co., which licenses technology to Saab.
Reuters contributed to this report