Saab Automobile may win Swedish state guarantees for loans from the European Investment Bank that exceed the SEK4.3bn (US$600m) originally sought according to a report by Bloomberg News.
The carmaker and potential investor Koenigsegg Group are having discussions with Swedish officials that are primarily focused on guarantees by the National Debt Office for EIB loans, Haakan Lind, a government spokesman, told Bloomberg.
The SEK4.3bnin guarantees being sought is not the maximum the company can get, Lind said. The debt office is overseeing a SEK20bn (US$2.7 billion) programme to guarantee loans for the auto industry, he added. The size of protection agreements is limited by EIB restrictions that the aid must apply to individual projects and focus on environmental improvements.
Saab’s current owner, General Motors, is divesting their Swedish operation as pasrt of its own reorganization and to focus on fewer brands.
Koenigsegg’s purchase of Trollhattan-based Saab from GM is tied to the EIB loan.