Volvo Cars and Saab have reportedly approached Sweden’s government about financial aid.
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The Financial Times said that the two companies’ parents – Ford and GM – are seeking to bolster their Swedish brands’ finances in anticipation of selling them.
Stephen Odell, Volvo Cars’ chief executive, and Jan-Ake Jonsson, Saab’s managing director, have spoken separately to Maud Olofsson, industry minister, and other officials about funds, the FT report said, citing people familiar with the talks.
Ford and GM will likely tell the US Congress they have long-term plans to dispose of the brands this week when they present detailed business and financial plans to support their request for $25bn of emergency funding, the FT said.
The report also noted that some US lawmakers are likely to seek assurances that taxpayers’ money will not go toward subsidising the carmakers’ overseas operations.
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By GlobalDataThe Swedish government is said to be considering options, but industry analysts say that it is significant that discussions have begun.
There has been speculation that the Swedish government will take a very keen interest in any possible change in the status of either Saab or Volvo Cars, should their financially challenged parents be forced to attempt further asset sales (possibly just to get loss-making units of their books). There have been some calls in Sweden for Volvo Cars to be nationalised.
