STOCKHOLM, Nov 24 (Reuters) - Sweden effectively ruled out state aid for GM’s [GM.UL] loss-making Saab unit on Tuesday after tiny luxury car firm Koenigsegg pulled out of a bid for one of the Nordic country’s best-known automobile brands.
“You can’t, by state aid, keep a company ongoing, if you don’t have any chance for a competitive company,” Joran Hagglund, state secretary at Sweden’s Industry Ministry, told reporters.
“That can only be assured by a private owner who really is familiar with the market conditions.”
Earlier on Tuesday, Koenigsegg pulled out of its planned purchase of Saab, which has estimated it would lose around 6 billion Swedish crowns ($865 million) in the 2008-2009 period. ($1=6.934 Swedish Crown) (Reporting by Nick Vinocur; Editing by Jon Loades-Carter) ((email@example.com; Reuters Messaging: firstname.lastname@example.org; tel: +46 8 700 1045))