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Nelson Ireson
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Brand sales are difficult in the U.S. and Europe, where there has been little interest thus far
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The U.S. House of Representatives has
just passed the $14 billion loan bill and it's now headed to the Senate, but that's not the end of the story. Lawmakers in Sweden have proposed their own aid package, totaling $3.4 billion for their country's auto industry. The primary players there are
Saab and Volvo, owned by General Motors and Ford.
The Swedish government has made it clear, however, that ownership is not one of the goals of the new legislation.
"The measures will be taken with the clear assumption that the state does not intend to acquire any of the existing automotive manufacturers," the Swedish government announced in a statement. "They are also based on continued openness in relation to the ongoing process in the U.S. automotive industry and conclusions drawn by current or any new owners."
The funding is intended in much the same way the U.S. loans are - to aid current continued operation with an eye toward longer-term viability through accelerated production of
green cars and technologies.
Both Saab and
Volvo are expected to apply for the funds, as improving their bottom lines would make them easier to sell - a proposition floated by both
GM and
Ford in recent weeks. Offloading the money-losing brands would simultaneously cut losses and give an influx of cash to the ailing carmakers.
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Have an opinion?Join the conversation!