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Volvo, Saab to Be Rescued by Swedish Government


creative commons - flickr.com: http://www.flickr.com/photos/samikki/32006502/

creative commons - flickr.com: http://www.flickr.com/photos/samikki/32006502/

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creative commons - flickr.com: http://www.flickr.com/photos/splorp/19743277/

creative commons - flickr.com: http://www.flickr.com/photos/splorp/19743277/

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Showing that economic troubles and auto industry woes are not confined to the U.S., Sweden just announced that it is releasing a 2.1 billion euro credit line/emergency loan for Volvo and Saab. AutoCar claim the money is both to help the automakers and safeguard Swedish jobs.

A statement from the Swedish government assured a "clear assumption that the state does not intend to acquire any of the existing automotive manufacturers." Interesting--and similar to U.S. Congressional mandates for efficient vehicles--is Sweden's pledge of 250 million euro for a government-backed automotive research company set to develop green technologies for future vehicles. This should dovetail nicely with Volvo's trio of DRIVe concepts and Saab's extensiveresearch and development of gasoline engines that actually make more power and better mileage while running on ethanol.

Both Swedish auto firms are currently controlled by U.S. automakers; GM owns Saab, while Ford owns Volvo. But in drastic attempts to stay alive and cut back costs, both domestics have put these European brands up on the auction block, showing the worldwide ripple effect of troubles in the U.S. auto industry.--Colin Mathews
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Comments (2)
  1. The clueless socialists (or socialists lites) in Stockholm can have both.
    It will have the same fate (a drawn-out and agonizing death) as British Leyland did, when the Brits tried to nationalize their own loser carmakers in the 70s.
     
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  2. Strange its bad for foreign countries to bail out their manufacturers but not the US? May be the best thing for all concerned to sell SAAB and Volvo to the Swedish Government, makes more sense than selling to the Chinese (who would probably move production off to Asia and just keep the names).
    Also can the Swedish government really do any worse than GM with SAAB? Why did they even bother? At least Ford tried (but generally failed) to do something with Volvo. Honestly wish them luck.
     
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