GM and Ford are petitioning the Swedish industry ministry to aid their Saab and Ford brands respectively. The Swedish government is considering a 2 billion Krona (248 million US, or 195 million euro) bailout for their domestic auto industry.
US automakers have turned into some pretty bold panhandlers. First, Chrysler's current owners decided to sue former proprietor Daimler for 7 billion US dollars because of 2007 losses that they think Daimler should eat instead of them. Strangely, that is the same sum they are seeking from a possible US government bailout. Now, GM and Ford have gone to the Swedish government in search of cash for their ailing Saab and Volvo brands, respectively.
Panhandling is maybe a crude way to put it but it does seem that the Big 3 have gone haplessly scrounging for quick cash without a real strategy for securing new capital or a comprehensive plan for the kind of radical restructuring the companies desperately need.
The Financial Times is reporting that Saab Managing Director Jan-Ake Jonsson and Volvo CEO Stephen Odell have both talked to Sweden's industry minister, Maud Olofsson and made requests for aid.
The Swedish government is considering a 2 billion Krona (248 million US, or 195 million euro) bailout for the Swedish auto industry, in the form of direct aid or loan guarantees.
US lawmakers, still considering a 25 billion dollar bailout for the Detroit automakers, are weary of giving money to the industry that may be used to prop up operations outside of the United States.
Volvo lost $458 million US dollars for Ford in the third quarter of this year. Saab has never made a profit since GM first bought a stake in the company in 1989.