Saab Automobile Has Prepared The Plan, GM Prepared to Inject The Money, Both Await the U.S. & Swedish Governments Decision on Tuesday, February 17th.

Posted on 16. Feb, 2009 by in 2000-2009

According to Trollhättan, Sweden’s TTELA news company, Saab Automobile AB Sweden’s CEO, Jan Ã…ke Jonsson has finished the plan, GM is apparently prepared to inject the money up to $600 million from the EIB, but now both are awaiting the Swedish Government to provide their share of the $400 Million dollars.

Below is a rough translation of this article for your reference, if you can follow it:

Photo: Jerry Lövberg / TTELA.SE

jaj_300.jpgSaab has developed the plan. GM is prepared to inject money. Now the ball with the government. But it is urgent. Time is on its way to running out of Saab Automobile.

In the last working Saab’s CEO Jan Ã…ke Jonsson feverishly to get all the pieces in place, to convince GM and especially the Swedish government to support Saab’s survival plan.

As the clock is ticking on without any decisive event has changed from the grave to acute.

The pot is the company Saab and jobs. Many job. Perhaps the 15 000 jobs in the balance. Maybe even more.

On Tuesday leaving owner General Motors in its action plan to the U.S. Congress. It must be good, otherwise the whole GM aid package to save the group escape bankruptcy.

Where GM must also talk about what we can imagine with Saab.

Most TTELA spoken to agree that Saab-issue must be resolved before then. Otherwise, it’s hard to be positive about the outcome. Then the worst scenario of a very real threat.

The plan to save Saab there. It is developed by the company itself with CEO Jan Ã…ke Jonsson in the lead.

It is a Swede, willful charming plan which essentially correspond to the image TTELA previously given.

Saab collects most of the production and development at Trollhättan. Planned model news rolled out and Saab have an independent role within the group.

GM supports the plan – and are prepared to inject money to realize it. Sum GM offer is in any case not less than the more than three billion kronor that was mentioned earlier this week.

But the plan requires the support of the Swedish Government. State must go in as a kind of creditor for a loan from the European Investment Bank, EIB.
And this is where the ball now. It will involve about five billion – and the government hesitates.
But this is hardly the sum of itself that is the problem. The aid would repay itself rather quickly in the form of tax revenue, compared with doing nothing and let the jobs lost.
No, see it rather as an ideological dilemma. How can the government act without violating their own beliefs – that of the state ownership is wrong?
There is breaking issue, and while the government worry, time is on its way to running out for Saab.
From Saab’s side works feverishly Monday to the end to find the solution that dissolves the knots between GM and the Swedish government at the negotiating table.

While the Swedish government was reluctant, the French earlier this week and promised its car industry 63 billion in loans at preferential rates.
Motkravet is that the companies provide guarantees on the jobs in its French factories.

This has led to reactions in the EU, which considers that the country strongly challenge the EU rules. But France seems oberört, and determined to support their industry.

It is obviously a delicate issue, how, whether and how governments should act.

You should have respect for the complex issue.

However, one must still ask themselves: December 11 picked Industry Minister Maud Olofsson and Minister for Finance Anders Borg many attractive political points in the Swedish automotive industry promised 28 billion kronor in the various support measures.

Since then we have seen that no one has a realistic chance to meet the requirements to get a rescue loan (see separate article).
And now the government hesitates to give Saab – one of Sweden’s four vehicle manufacturers – with the assistance of EIB support needed.
So the question is – what was really the ministers that the money would be used for?

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