The Swedish government has created a $3.4 billion (28 billion kronor) support package including credit guarantees and rescue loans for Volvo and Saab, hours after the US approved their own aid package. Børk! Børk! Børk!
The Swedish government passed a $3.4 billion (28 billion kronor) support package including credit guarantees and rescue loans for Volvo, Saab and the rest of Sweden's not-so-huge automotive industry. This came mere hours after the US approved their own "bankruptcy lite" aid package (would we call this "bailout lite"?), just passed by whatever body it is that passes such things in Sweden, consists of a maximum of 20 billion kronor in credit guarantees to automotive companies and up to 5 billion kronor in rescue loans to bail out companies in crisis.
The government said Thursday it also will earmark 3 billion kronor in R&D monies in the automotive sector — we're assuming that's like their version of the R&D fund passed by Congress what seems like eons ago. Carmakers Volvo and Saab have been appealing to the government for support because of the financial woes of their US owners, Ford and GM. [via Detroit News]
Photo Credit: Worth1000