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.

Comments

    Leave a comment