Sweden’s government at the weekend dismissed a local television report that negotiations between General Motors and Sweden over carmaker Saab had broken down.

GM and the Swedish government were not able to agree on the terms of SKR5bn (US$599m) in loan guarantees to create an independent Saab, public service broadcaster SVT had said, citing sources, according to Reuters.

But Lisa Warn, spokeswoman for Swedish industry minister Maud Olofsson, denied talks with GM had been halted.

“Discussions are ongoing. This (report) is something we don’t recognise at all,” Warn told the news agency.

Last December, Sweden outlined a plan to save its ailing auto industry by offering up to SKR25bn crowns in credit guarantees and emergency loans, but said it had no plans to buy stakes in Saab or Volvo.