Sweden to offer loans to Volvo and Saab

Sweden is set to provide several billion kronor worth of loans and loan guarantees to embattled automakers Volvo Cars and Saab Automobile, according to a report in the Swedish business press.

Sweden to offer loans to Volvo and Saab

Ford and General Motors have both said they want to sell their respective Volvo Cars and Saab Automobile units and have held talks with the Swedish government on what kind of support it might offer.

“It is not a question of subsidies or of the government going in as an owner, but of loans and loan guarantees on good terms,” an unidentified source told the Dagens Industri (DI) newspaper.

The two car makers are important to the wider Swedish economy not only because of the thousands of workers they employ directly, but also because of the many companies that supply the firms.

The report also said the government is in talks with the two car firms and truck makers Volvo and Scania about establishing a jointly owned company to promote environmentally friendly research and development.