GM asks Swedish government to bail out Saab

General Motors is understood to have approached the Swedish government for financial aid for the Saab brand. The plea for funding comes less than a week after it was reported GM was considering axing Saab in a bid to cut costs and win $12bn (£7.8bn) in US government loans.

According to reports, GM wants to improve Saab’s market potential and sell the Swedish subsidiary as soon as possible. The ailing carmaker hopes that governmental funding will help the company raise awareness of the brand’s potential.

It is understood that Ford is also interested in securing a similar deal for its Volvo brand.

Maud Olofsson, the Swedish in industry minister, says that the government will consider offering money to car marques, but only if they receive clear information about how the US parent firms will spend the funds.

The plea to the Swedish government follows GM’s bid for funding from the German government. It is asking for $1.25bn (£800m) to help keep the Opel brand afloat.

GM is currently under pressure to come up with a detailed survival plan for the US government, alongside Ford and Chrysler. The companies will submit detailed plans to Congress showing how they plan to repay federal aid tomorrow.

Congress will discuss the case on Friday and could vote on the rescue plan as early as next week.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here