I guess it shouldn’t be that surprising, right?
Saab have until April 6th to submit their formal plan with the assistance of a consultant and their appointed administrator, but it seems they’ll be fighting an uphill battle.
Swedish Enterprise Minister, Maud Olofsson, indicated that she was still cold on Saab’s plans.
From The Local:
Swedish Industry Minister Maud Olofsson argued that the reconstruction plan presented by GM is “unsustainable” and thereby ruled out the prospect of Saab taking advantage of the rescue package of loan guarantees.
“A sustainable business plan is required which offers the prospect of profit with a reasonable time frame,” Olofsson said on Friday afternoon.
Thankfully, there’s more detailed plans coming.
I just wonder how responsible this really is on the government’s part. They may carry the can for a few years but I really do believe that Saab can be profitable in the near to medium term.
The cost of all those lost jobs and the associated losses in tax revenues are going to ring home for a considerable time if Saab are left to wither.
With a new range and appropriate incentivisation on the government’s part – which the whole industry needs at this time, not just Saab – they can do it.
I wonder if and how her tune will change if Volvo end up in the trouble people are saying they might be in.