Sweden approves auto aid for Volvo, Saab
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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Reader Comments (Page 1 of 2)
Gary 11:04AM (12/11/2008)
Let the hate begin... :-(
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mjk 11:05AM (12/11/2008)
so technically...aid for Ford and GM?
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Mazda FTW! 11:07AM (12/11/2008)
I'm offcially bored of this topic and especially that picture lol
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EskimoPie 12:17PM (12/11/2008)
I disagree... the picture and speech bubbles still crack me up... it's just a perfect picture to add any text you want.
Randy 12:40PM (12/11/2008)
KEEP THE BUBBLES :-)
Bill cosworth 11:39AM (12/11/2008)
Were Board of new Mazda cars.
They are So Fugly and unsafe.
Buy a Ford its quality and saftey.
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Seminole 12:42PM (12/11/2008)
What?
thomas 12:43PM (12/11/2008)
WHAT??!?!
Stumpy 12:58PM (12/11/2008)
"English MotherFu**ker! Do you speak it?!?!"
happy_penguin 1:55PM (12/11/2008)
ROFLMMFAO@Stumpy! :D :D :D
Scott K. 11:16AM (12/11/2008)
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...
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MTU 5.0 11:37AM (12/11/2008)
LOL Me too. Keep the bubbles coming Autoblog.
jamie 11:26AM (12/11/2008)
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.
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Scotian28 11:46AM (12/11/2008)
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!
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happy_penguin 12:00PM (12/11/2008)
That's what krona means.
Dazza 12:23PM (12/11/2008)
A Krona is a Crown.
Ligor 11:57AM (12/11/2008)
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
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jamie 2:29PM (12/11/2008)
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?
nardvark 12:54PM (12/11/2008)
So would this make selling Volvo a money-losing proposition in the short run, because the new buyer would get the cash?
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ken_aisin 1:02PM (12/11/2008)
The Swedish government should actually take this opportunity to buy them back at cut throat prices.
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