GM Generali

By Steve Goldstein

LONDON (Dow Jones) -- The Saab Automobile division of General Motors on Friday filed for creditor protection after failing to get funds from both the Swedish government and its parent.

"Pending court approval, the reorganization will be executed over a three-month period and will require independent funding to succeed," it said. Saab said it's seeking funding from both private and public sources.

General Motors (GM) had warned of such a move in a filing to the U.S. Congress earlier this week. GM said at the time that it wanted Saab to be independent by 2010.

Saab has only made a profit once in 20 years.

Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe, said Saab's Detroit parent "oversaw the destruction of the Swedish car company's soul."

He cited Saab's 9-3 model as an example, saying it's a Saab body skin wrapped around the Vectra model of GM's mass-market brands Opel and Vauxhall.

"Did GM really believe that a potential Merc or Beemer buyer would have their head turned by a reskinned Opel?" Pope asked, referring to the Mercedes unit of Daimler (DAI) and BMW .

Saab said its plan is to concentrate design, engineering and manufacturing in Sweden, which it will present to creditors within three weeks.

Saab will continue to operate as usual.

"We explored and will continue to explore all available options for funding and/or selling Saab and it was determined a formal restructuring would be the best way to create a truly independent entity that is ready for investment," said Jan Ake Jonsson, Managing Director for Saab Automobile, in a statement.

Trollhaettan-based Saab is not related to the publicly traded Saab , which makes aircraft engines.