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!