The fates of Volvo and Saab look a little brighter today as Sweden has announced that it will aid its struggling auto industry with up to 25 billion Swedish kronor ($3.10 billion USD) in credit guarantees and emergency loans. The government only plans to aid the automakers and has no intention of purchasing a stake in either company.
Both Ford and GM have talked with the Swedish government over possible support. Today, the government announced it will offer the companies 20 billion kronar ($2.5 billion USD) in collateral-backed credit guarantees, for the production of energy-efficient vehicles. It will also offer “rescue” loans of up to 5 billion kronar ($627 million USD), and spend up to 3 billion kronar ($3.7 million USD) on automotive research and development through a new state-owned firm.
As the bill for aid in the U.S. makes its way to the Senate this week, Ford and GM are still contemplating the future of their Swedish brands. Ford has confirmed that it is considering selling Volvo, and earlier Ford has reportedly entered talks to sell the brand to its manufacturing partner in China. GM has mentioned in its business plan during the Congressional hearing that it is considering selling Saab, but there have been few (if any) offers.