Sweden's Industry Minister Maud Olofsson. Photo / AP
Sweden's Industry Minister Maud Olofsson. Photo / AP
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The Swedish Government has said it is not prepared to take over Saab, General Motors' loss-making Swedish subsidiary.
Sweden's Industry Minister Maud Olofsson said she was "deeply disappointed" after GM CEO Rick Wagoner said Saab could be forced to file for bankruptcy by the end of the monthwithout Swedish state funding.
"What GM says is that they wash their hands of Saab and drop it into the laps of Swedish taxpayers," Olofsson said. She added that a company reorganisation of Saab was "the most realistic path. This could offer possibilities to develop the parts of Saab that are very good," she said, underlining such a move was up to GM. "The Swedish state and taxpayers will not own car plants." GM failed to mention the future running costs even if the Swedish state gives Saab a US$570 million ($1.1 trillion) loan guarantee, Olofsson said.
GM said it is seeking financial help from Sweden "given the urgency of stemming sizeable cash demands associated with Saab operations". Wagoner said he could not see GM retaining ownership of Saab and it could be spun off into an independent business from January 1 next year.
"Somebody needs to come in and take over the business in the near term."
Any buyer of Saab could have access to GM technology, he added.
In December, Sweden outlined a plan to save its auto industry by offering credit guarantees and emergency loans, but said it had no plans to buy a stake in Saab. GM and Sweden have yet to agree on terms an aid package.
"They've been very open and the dialogue has been positive, but we haven't found the solution yet," GM Chief Operating Officer Fritz Henderson said of the Swedish Government.
GM said in its submission to the US Treasury last Tuesday that its Saab, Hummer and Saturn brands had generated a loss of US$1.1 billion on an EBIT basis (earnings before interest and tax).
