Saab Automobile Now Funded By U.S. Government’s Majority Owned “New GM”, But For How Long?

Posted on 07. Jul, 2009 by Ryan in 2000-2009

It once seemed impossible, but now more evidence is proving my original theory for Saab Automobile’s funding in lieu of getting any new financing.

The “new” General Motors, now owned by the United States Government, is Saab Automobile’s sole source of funding, which means, the United States Government is indirectly funding Saab Automobile at this time.

In the meantime, Saab Automobile needs to secure their new financing sources, but there has been some delay and difficulty obtaining that funding. The delays stem from the Swedish Government, who originally announced emergency loans back in December. Now however, the rules have become not less, bu more strict. The other loans from the European Investment Bank loans for future development may not be able to be obtained until September and that’s been a challenge too. However, we know that ultimately, GM indicated again back in December, that their funding will continue until the end of this year, so Saab Automobile has effectively just under 6 months to secure funding.

Do you remember those dialogues that the Swedish Minister, Maud Olofsson had with Ron Bloom at the U.S. Treasury back in March? Well I do, and recently learned that those dialogues involved an interim financing plan for Saab Automobile through the U.S. Government and the “new GM”. It seems that now, that interim plan is taking place with United States taxpayers are footing the bill for Saab Automobile’s operations in Sweden until that future funding is secured. It was one thing when the Trollblazer (Saab 9-7x) was built in Ohio, but now there are no Saab’s built in the United States.

I find it incredible that it is once again the United States Government that continues to help out others in need, and this time before the Swedish Government did for their own company. To add insult to injury, it was also the Swedish Government that originally refused to help fund Saab Automobile, citing concerns that the funds would end up in the United States. So, this begs an important question, why does the Swedish Government have a double standard allowing the United States government to fund operations in Sweden, where they won’t allow the opposite? The onus is now on the Swedish Government to take a stand against this, if they don’t, well, the writing will be on the wall and they will continue to isolate themselves from everyone.

I can remember being interviewed about the possibility of the Swedish Government owning Saab Automobile, and at one time, I thought it was a reasonable option in lieu of a proper buyer with financing, however never did I ever, think that the United States Government would be indirectly financing Saab Automobile, even if it’s for a few months or so.

While I have certainly spent my fair share of time and resources over my lifetime trying to promote the Saab Automobile marque, I doubt that the entire taxpaying population of the United States would warm up to this idea. GM has indicated that they will continue funding up until December, 2009, so, that’s it, with or without operational financing for Saab Automobile.

Here’s hoping that they find their financing source soon! The sooner emergency financing comes from the Swedish Government, Saab Automobile’s existing operation will be able to sustain itself hopefully long enough so that will be able to make it to receiving their next loan, from the European Investment Bank. Then and only then, will we be able to see Saab Automobile complete their turnaround plan, now with Koenigsegg behind the wheel.

Tags: injury, Maud Olofsson, Minister, Ron Bloom, Sweden, Swedish Government, U.S. government, U.S. Treasury, United States, United States Government