The Swedish government has presented a 25 billion kroner (US$3.4bn) support package to help its automotive sector. The plan – still requiring lawmakers’ approval –  offers credit guarantees, emergency loans and research funds to boost automotive companies.

Car makers Volvo and Saab have reacted positively and are said to be deciding whether or not to apply for loans if the package is approved by Sweden’s parliament.

The Swedish government said its support package was needed to safeguard “the continued success of the Swedish automotive industry,” even if the industry’s crisis deepens. It also called for quicker development of green technology.

The plan includes a maximum of 20 billion kronor in credit guarantees to automotive companies, and up to 5 billion kronor in rescue loans to bailout companies in crisis. The government said it would also earmark 3 billion kronor for research and development in the automotive sector.

The centre-right four-party government coalition also said it was not interested in ownership in Volvo and Saab.

“The measures will be taken with the clear assumption that the state does not intend to acquire any of the existing automotive manufacturers,” the government said in a statement. “They are also based on continued openness in relation to the ongoing process in the U.S. automotive industry and conclusions drawn by current or any new owners.”