Swedish government still bullish on Saab

Despite the Swedish Prime Minister’s mini-rant a few days ago, it seems there is still some hope for Saab, even if GM go into a voluntary Chapter 11 bankruptcy as some are predicting they might.
This is a report from Swedish radio today, translated by someone who wishes to remain anonymous.
The Swedish government has not given up the hope to save Saab. The negotiations with Saab and it’s owners GM, General Motors, continue, say state secretary Jöran Hägglund to the Swedish Radio.
The negotiations are firstly about GM’s requirement on the Swedish government to guarantee loans from the European investment bank.
— There are no concrete ready proposals to consider yet, says state secretary Jöran Hägglund, but I think that the talks are conducted in a good spirit.
It current situation is very pressed for GM now. The giant car manufacturer will Tuesday evening in Washington show how the company can become profitable again, and how GM can repay the government loans of more than 100 MSEK.
During the weekend there was information published that GM had plans to file for bankruptcy protection for the core business in the US and let the other parts, among which would be Saab in Sweden, file bankruptcy.
This is nothing Jöran Hägglund has heard during the negotiations, but if this would become reality, it would change the conditions of saving Saab, he notes.
“GM has declared that they would like to sell Saab. But currently, there is no buyer”, according to Jöran Hägglund. He totally excludes the possibility of the government to own Saab.
The loan guarantees that have been discussed would be 5 billion Swedish kroner for a development loan from the European investment bank. GM is so weakened that the Swedish government must warrant the loans.
Even if GM would let Saab go, there is the opportunity for Saab in Sweden to seek loans with government guarantees, according to Jöran Hägglund:
— The most specific demand is that all projects for which government guarantees are sought for must be conducted in Sweden.
According to Jöran Hägglund, the Swedish government has not yet been informed about what GM will say about the future of Saab when they will present their future plans for the US authorities in Washington.

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