Swedish government gives Saab the cold shoulder

It is looking like Saab is toast. This comes from Dagens Nyheter, a Swedish daily (note: I originally saw this covered in the Austrian daily Kurier):

The government gives Saab cold shoulder

Commerce Secretary Maud Olofsson continues to give Saab the cold shoulder. It is not an option for the state to buy or take over Saab, which is threatened by the closure of American automaker GM, according to svt.se [Swedish Television]

On Tuesday, crisis-ridden Saab owner General Motors will present their plans for the future. But Commerce Secretary Maud Olofsson has low expectations that it will not mean good news for Saab.

The odds for Saab are not very good, she told SVT’s Report on Tuesday evening. According to Maud Olofsson, GM has not put forward any strategy that shows how Saab will be able to reach profitability. She also questions GM’s intentions and believe that if the U.S. carmaker was serious, it would have applied for a bailout loan from the European Development Bank.

According to TV4 news sources within the Cabinet Office, the Government will not risk taxpayers’ money to rescue the Saab from a bankruptcy.

Maud Olofsson’s attitudes on the issue of Saab are shared by others in the Cabinet. Even Prime Minister Fredrik Reinfeldt believes that the responsibility is in GM’s hands.
In connection with the car show in Detroit in January GM’s Europachef Carl-Peter Forster said, “the Swedish government has Saab’s fate in their hands.” GM needs state aid in particular to develop the new Saab 9-3.

Then it was said that GM would produce a business plan to the Swedish government, which showed that Saab had a future as a viable producer.

– The signals are very clear, the government does not want to take on any car manufacturer, said Carl-Peter Forster, who, instead is hoping for government guarantees for loans to be raised in the European Investment Bank.

Regeringen ger Saab kalla handen – Dagens Nyheter
Aus für GM-Tochter Saab? – Kurier

  1. Swedish Lex says

    As a Swede (living abroad) and (former) SAAB owner, I am of course following this.

    The reality is that both SAAB and Volvo are at the bottom end of the global car manufacturer food chain. SAAB has been losing money and Volvo’s profits have gone to cash-hungry Ford. Volvo’s capital is exhausted, so it is only a matter of time for Volvo too.

    Bankruptcy for SAAB (and later Volvo) and a string of suppliers would kill a big chunk of GDP that would not come back. Sweden’s little export-driven ecnomoy would suffer significantly

    This was in the cards, of course, and I spoke to friends in high places in Stockholm in the fall about alternatives. This was not avoidable but there was a window for the Government to manage this in a structured way. Now it seems that the situation has spun out of control.

  2. corruptio says

    Sweden is a poor country involved in the Afghan heroin-trade adn robbing African countries. Wake up and see the truth about the Swedish government who is destroying the world and killing millions every year.

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