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.
12/11, 12:10 PM
posted by:
howsmydriving
Funny, when the porno film industry shifted from Stockholm to Van Nuys, California, the Swedish government didn’t provide a bailout.
12/11, 12:16 PM
posted by:
AnonymousCoward
@howsmydriving
They needed sunshine all year round. “Hard” for the Government to provide that through bailout packages…
12/11, 12:40 PM
posted by:
Borat
@howsmydriving, perhaps they would, if were asked. Sweden is very liberal social democratic state, they would support local C & D, but I think they choose to move to California. I think this move toward the sunny climate, may explain Feinstein and Polosi (not visually, but ideologically)
12/11, 12:42 PM
posted by:
A4
if only our government was this efficient
this is why we dont cant figure out how to sell inexpensive build it yourself furniture.
12/11, 12:47 PM
posted by:
A4
(not dont)
12/11, 1:09 PM
posted by:
johnnycanuck
How much did they set aside to inject some personality back into both lines?
12/11, 1:45 PM
posted by:
Struggle
3.5 bil? Too bad it wasn’t to buy back the brands.
Maybe Ford and GM are desperate enough to take that money for those brands to go back to Sweden where they belong, and give my a desirable Saab product again.
12/11, 1:46 PM
posted by:
mayer_ray_nagin
So the germans are doing it, the swedes are doing it, it’s in progress with the french and italians, and the japanese ministry of international trade and industry (MITI) is always tinkering with and helping Toyota and Nissan and to a lesser extent Honda, but if the Big 3 need it once in a blue moon then it’s “wrong.”
12/11, 2:40 PM
posted by:
yarddog82abn
My Swedish bank account is 100% granted… all $10.61 of it.
What do you want me to say, it was a gift….
12/11, 4:13 PM
posted by:
pzimet
Sometimes the Europeans really shame the U.S. government and it’s retarded complexities. Many times, in fact.
12/11, 9:58 PM
posted by:
Get Real
Big 3 can file bankuptcy. BIg companies do it all the time, let them die and reorganize.
BUT then there will be no more UAW……and guess who votes Democrat straight tickets ???
A bailout for the Big 3 is really a UAW bailout. NOT a GM or Ford or Chrysler bailout.