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Swedish Gov Grants Saab $585M Loan, Leaves Volvo To The Buzzards

Posted in auto industry, Car Buying, Cars, Foreign Cars, GM, Newsworthy, Politics, Saab, Volvo by Suzanne Denbow | October 6th, 2009 | Leave a Reply |


Late yesterday evening, reports broke that the Swedish government had agreed to guarantee Saab’s request for a $585 million European Investment Bank loan apparently needed to secure Koenigsegg’s tentative bid for acquisition. Today, a spokeswoman for Swedish Industry Minister Maud Olofsson stressed that although the government has tentatively approved the disbursement of funds, the transaction will not be final until it receives official approval from the EIB. Off the record, the deal is regarded as good as done and the Swedish government’s only real hurdle is making sure that fellow Swedish manufacturer Volvo doesn’t feel as though they’re getting the shaft – which barring any new developments is exactly what’s happening.

Regardless of how thin the guise however, the Swedish government is still clinging to diplomatic procedure and says the decision to approve the loan now rests squarely with the EIB who will hopefully make a decision by October 21st. If the transaction is approved, expect an official announcement to follow soon thereafter regarding a similar grant for Volvo.

Source: Auto News
Image Cred: Getty Images

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