While General Motors and Ford were busy lobbying the U.S. government for low-interest bridge loans, their Swedish luxury brands – Saab and Volvo , respectively – were in front of their home government asking for a similar bailout plan – albeit for far less cash. Apparently the Swedish government is far more sympathetic to its auto industry, and has already formulated an aid package.
In all, the Swedish government has approved an automotive bailout plan worth $3.5 billion, which includes lines of credit and low-interest loans, according to Automotive News. Saab and Volvo haven’t officially declared if they will apply for government aid, but, in all likelihood, both automakers will be seeking at least part of the $3.5 billion set aside.
“We are extremely positive,” Eric Geers, spokesman for Saab , told Automotive News Europe. “We have to work out the details, but this is a good step from the government with whom we have been having good discussions.”
Some of Saab’s and Volvo ’s suppliers will also be eligible for the government funds.
The aid won’t see the Swedish government taking a stake in either automaker – as previously speculated – but will be broken up into three major sums. The first chunk of money — $375 million – will be invested in “a state-owned research and development company.” The next $2.5 billion will take the form of a credit line from the European Investment Bank, to be used to fund green technology, with the last $625 simply being a cash infusion.
Although Saab and Volvo’s future ownership is up in the air, Sweden’s auto aid package should be enough to see the automakers through these turbulent times.
