STOCKHOLM (AFP)--Swedish automaker Saab wants to tap the
European Investment Bank for emergency funding as its U.S. owner
General Motors Corp. (GM) prepares to sell the company, Sweden's
minister for enterprise and energy said Tuesday.
Maud Olofsson told Swedish television that "it is clear that GM
wants to sell Saab," adding that the government will act as a
guarantor for any EIB loan to Saab.
U.S. auto giant GM had announced in December it planned to sell
Saab, but the loss-making Swedish brand needs extra funding to
secure its survival.
Discussions on securing a loan initially took place between
Saab, GM and the Swedish government at the start of December.
Swedish press reports say Saab is seeking to borrow as much as
EUR475 million.
Meanwhile, General Motors, after securing just over $9 billion
in emergency funding in January, will present a restructuring plan
to the U.S. Treasury late Tuesday - believed to include
establishing Saab as an independent company.
Volvo Cars, owned by U.S. automaker Ford Motor Co. (F), already
requested a loan of EUR475 million from the EIB at the end of
January.
Around three-quarters of a rescue plan for the Swedish car
industry amounting to 28 billion kronor (EUR2.7 billion) consists
of Swedish government guarantees for loans from the EIB.