Saab may still require aid from Swedish government

Article by Christian A., on August 27, 2010

According to a Swedish minister Saab may still require loan guarantees from the Swedish government in spite of its impending takeover by Koenigsegg.

This is because the government is uncertain at this point in just how much cash Koenigsegg is ready to inject into the struggling carmaker. Saab may also need crucial loans from the European Investment Bank (EIB) to guarantee its future, which the government should ensure.

GM, the parent company of Saab, struck a deal with niche supercar manufacturer Koenigsegg to sell Saab. However, the key element, that is, the amount of money Koenigsegg is willing to put into Saab, has not been disclosed.

Another key point is the ability of Koenigsegg to lead Saab. If it will come out that they will require government loan guarantees in order to avail of EIB credit, then they should approach the government.

Although this might not really be needed, but the government's involvement cannot simply be assumed. However, a spokesperson for the Swedish government said that it would really be better if Koenigsegg invests enough money into Saab to pass up government involvement.

GM has said though that the deal with Koenigsegg, which is supported by US and Norwegian investors, is going to possibly include EIB assistance amounting to 363 million Pounds ($600 million).

If you liked the article, share on:

Topics: saab, sweden

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019