Saab, the Swedish carmaker owned by America's General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night.

GM said last night that as part of a sweeping restructuring of its global operations, it aimed to sell Saab along with other underperfoming businesses including its Hummer brand.

However, GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month.

“Given the urgency of stemming sizeable cash demands associated with Saab operations, GM is requesting Swedish Government support prior to any sale,” the Detroit-based group said.

“While GM hopes to reach agreement with the Swedish government, the Saab Automobile AB subsidiary could file for reorganization as early as this month,” it said.

But this morning, the Swedish Government appeared to rule out the prospect of state support in the interim period.

“The Swedish state and taxpayers in Sweden will not own car factories,” Maud Olofsson, the industry minister, said. “Sometimes you get the impression that this is a small, small company but it is the world’s biggest automaker so we have a right to make demands.”

She said that talks with Saab were continuing and that the group had asked the Government for 5 billion Swedish kronor (£400 million) to keep it afloat until the start of next year.

"When I see that Saab has been running at a loss for so many years it would be irresponsible for me to stand here and say, sure, we are going to use the taxpayers' money in this way. I don't think I was elected to do that," she said.

GM gave its stark warning over the future of Saab as part of a "viability plan" it revealed to the US Treasury last night which stated the car giant needed as much as $30 billion in funds to stave off bankruptcy. Chrysler is also seeking extra taxpayers’ cash to survive, according to restructuring plans filed with the US Treasury last night.

Saab, which is based in Trollhaettan and was founded in 1947, employs over 4,300 people. It is one of Sweden’s best-known manufacturing brands.

GM, which last night also announced plans to slash 47,000 jobs out of its global workforce of 244,000, said that it had offered the Swedish Government a specific proposal that would cap its financial support for the business, with Saab effectively being spun off as an independent business from the start of next year.

Including suppliers and other manufacturers such as Volvo, owned by Ford, the Swedish car industry employs 140,000 people in a country of just nine million. The car industry accounts for 15 per cent of exports.

Saab has been wholly owned by GM, which is struggling to avoid bankruptcy, since 2000.

GM said that it could run out of money by March without the money it has requested from the US Government. It said that it needs $2 billion next month and another $2.6 billion in April.

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