http://www.guardian.co.uk/business/2008/dec/11/volvo-saab-rescue-planThe Swedish government today set out a Skr28bn (£2.35bn) plan to rescue its troubled auto industry, especially Volvo and Saab – owned by Ford and General Motors respectively.
This follows last night's decision by the US House of Representatives to endorse a temporary $14bn (£9.4bn) loan for America's Big Three carmakers – GM, Ford and Chrysler. The deal could yet be undermined by the Senate where it faces severe opposition from Republicans.
The Swedish scheme envisages a maximum 20bnSkr in credit guarantees and a further 5bnSkr in rescue loans for companies in crisis. The government has already set aside 3bnSkr to help the industry develop green technologies. Its move came as the German car industry demanded a multibillion euro injection from both the US government and the EU in the face of frozen credit lines.
Cash-starved Ford and GM are selling off Volvo and Saab but Sweden's centre-right government said it had no intention of taking stakes in either company. Finance minister Anders Borg said the scheme laid the groundwork for solving the real problems of the auto industry.