In a move that appears to favor Volvo over Saab – or at least Volvo’s Ford ownership over Saab’s General Motors ownership – news comes out of Sweden that the local government is set to guarantee a loan for Volvo Cars. Ford has been attempting to divest itself of Volvo, but in the interim, the Dearborn, Michigan, automaker says it needs 5 billion kronor ($573 million).
Joran Hagglund, Sweden’s Industry Ministry state secretary, said that the government is preparing to approve an application that would be filed at the European Investment Bank next month, according to Dagens Industri.
Hagglund was quoted as saying that the government would guarantee 90 percent of the loan, leaving the additional 10 percent up to outside investors.
Obviously, the move favors Volvo to Saab , another American-owned Swedish brand that has been requesting loans from the government.
“Unlike GM, Ford has clearly stated they will take full ownership responsibility and guarantee capital flows to Volvo Cars until they have found a new owner for Volvo Cars,” Hagglund told Dagens Industri.
Still, the move hardly guarantees Volvo’s future. Many analysts have said that, despite Saab’s close integration into the GM portfolio, the brand’s smaller size might make it more accessible to outside investors.
