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As both General Motors and Ford try to unload their respective Swedish brands, Saab and Volvo's country of origin has stepped in to provide a little financial relief. Sweden will provide up to 25 billion crowns ($3.1 billion) in emergency loans and lines of credit to both Saab and Volvo, though reiterated it has no plans to take any stake in the two auto brands. Most of the federal aid will be comprised of a 20 billion crown line of credit, while 5 billion will be offered in "rescue" loans. In addition, Sweden will also spend 3 billion crowns on a new state-owned institution for automotive R&D.

The new aid package for Saab and Volvo comes literally hours after the U.S. House of Representatives passed an Auto Rescue/Bailout Bill for U.S. automakers. Testifying in front of Congress, both GM and Ford recently promised to pare down and focus on their core brands, which do not include Sweden's two native automakers. While their sale is being pursued by both U.S. automakers, aid from Sweden should should keep their doors open and lessen their burden on GM and Ford. Thanks for the tip, everyone!

[Source: Reuters]

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    • 1 Second Ago
      • 6 Years Ago
      The Swedish government should actually take this opportunity to buy them back at cut throat prices.
      • 6 Years Ago
      ROFLOL! Hilarious Autoblog! You made my day. :)

      Wow! That means Ford can keep Volvo, for sure. They should immediately merge Volvo with Mercury and drop the Mercury moniker altogether. Ford-Lincoln-Volvo would put Ford in a better alignment to take on the 21st century.

      I hope this means that Saab will benefit from more R&D and start producing new and improved designs in the near future. GM had better dust off those old plans for the Aero--x, 9-x, 9-4x, et al.
      Saab still makes for a good entry level Cadillac and that should be its main focus. No need for Caddy to complicate or duplicate the effort though with such lame efforts as the BLS.
      • 6 Years Ago
      I don't really see a future with Saab, It's to much of a niche brad that very few people want, but I'm happy to see a few more billion to save Volvo.
      • 6 Years Ago
      It's not "federal" aid when it comes from the Kingdom of Sweden, Autoblog! There's a reason the currency is called a crown!

      You wrote: "Most of the federal aid will be comprised of a 20 billion crown line of credit, while 5 billion will be offered in "rescue" loans."
        • 6 Years Ago
        Sure it is (federal), Sweden is a Parliamentary Democracy and Constitutional Monarchy, just like the UK.
        • 6 Years Ago
        No, Paul, Sweden does not hand out "federal" money. A federal government is the common government of a federation. A federation is a union comprising a number of partially self-governing states or regions united by a central ("federal") government. Sweden has one government, one King and is one state!

        I don't care what the UK is defined as because we are talking about Sweden! The UK includes several countries, yet it also not a federation! The only federated monarchies that exists are the UAE and Malaysia.
      • 6 Years Ago
      that's funny
      keep it coming

      but, note how the Swedish gov't jsut gave them the loans without to much questioning

      maybe our gov't is trying to get lame duck Bush to look responsilbe in his last days, hehhe
        • 6 Years Ago
        There's method in their madness.

        First, if Ford and GM tumble in the states, then Opel, Saab and Volvo can pick up the pieces. They won't be involved in any bankruptcy proceedings and will skirt by with piles of cash in hand.

        Secondly, a bit of a shell game is being enacted here. The Rickster says listen up Congress, if you don't help us out, then kiss the American auto business goodbye. You think 533,000 job losses last month was more than you expected? Wait till January, sonny-boy...

        Not all Dumbs are Blonde, ya know?
      • 6 Years Ago
      FYI - The swedish currency is a Krona, not Crown.

      Agreed with the bubbles, I have a good laugh everytime a new one goes up. Keep em coming AutoBlog!
        • 6 Years Ago
        A Krona is a Crown.
        • 6 Years Ago
        That's what krona means.
      • 6 Years Ago
      I'm still liking the speech bubbles.

      It is telling how much easier they got the loans from Sweden compared to their own country... Maybe Sweden should have just offered to buy both of them for 3.1 billion each...
        • 6 Years Ago
        LOL Me too. Keep the bubbles coming Autoblog.
      • 6 Years Ago
      Were Board of new Mazda cars.

      They are So Fugly and unsafe.

      Buy a Ford its quality and saftey.
        • 6 Years Ago
        ROFLMMFAO@Stumpy! :D :D :D
        • 6 Years Ago
        • 6 Years Ago
        "English MotherFu**ker! Do you speak it?!?!"
      • 6 Years Ago
      So would this make selling Volvo a money-losing proposition in the short run, because the new buyer would get the cash?
      • 6 Years Ago
      swedish companys have a long tradition to make all kind of technical inventions like cars vehicles trucks combat boats and all kind of military equipment
      absolut vodka,armor, ball bearings ,weapons , lutfisk
      dont slip them into chinese hands, keep em in US ownership!
      • 6 Years Ago
      Any country with any government beneath the head government is a federalist system.

      More loosely it represents consent of the governed.
      • 6 Years Ago
      Just to clearify:
      The 20billion SEK (swedish krona) is a loan to SAAB and Volvo.
      5billion is for sub-contractors making parts.
      3billion is placed in a R&D-joint venture company (sort of) owned by
      Volvo Cars, Volvo Trucks, SAAB Cars and SAAB Trucks (Scania) and under the supervision of the Swedish state.
      The money is only allowed to be used in Sweden, thus saving swedish jobs.
      It is supposed to be a "regular" loan with appropriate security and also long term, meant to aid the development of efficient cars and trucks.
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