Sweden to guarantee Saab loan
The Swedish government is prepared to guarantee a $600 million loan to loss-making Saab Automobile.
The Swedish government has notified the European Commission that it is prepared to guarantee the 4.3 billion kronor ($610 million) loan that that ailing car maker Saab has asked the European Investment Bank for, news agency TT reported.
"The deal still lives in our view. If we hadn't believed in it, we wouldn't have chosen to notify the commission," Swedish state secretary Jöran Hägglund said. "It is now up to the EIB to assess Saab's chances to borrow money."
The government’s decision is utterly good news for Swedish luxury car maker Koenigsegg that plans to buy Saab from its parent General Motors with backing from U.S. and Norwegian investors. GM has said the deal hinges on the EIB approving the loan.
Questions have abounded in Sweden over what the future holds for Saab, with some experts and commentators expressing doubts about whether Saab's new owners have the necessary expertise to run a major car company.
Koenigsegg Group, founded in 1994 by von Koenigsegg, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros (1.4 million dollars) each.
Saab, by contrast, employs 3,400 people in Sweden alone and sold just over 93,000 cars worldwide in 2008.
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Last Updated (Tuesday, 06 October 2009 09:27)
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