December 8, 2008 / 7:49 AM / 11 years ago

Sweden set to offer loans for car makers: report

STOCKHOLM (Reuters) - The Swedish government is expected to offer loans and loan guarantees worth several billion Swedish crowns to struggling U.S.-owned car makers Volvo Cars and Saab Automobile, daily Dagens Industri reported on Monday, citing an unidentified source.

Ford and General Motors have both said they want to sell their respective Volvo Cars and Saab Automobile units and have held talks with the Swedish government on what kind of support it might offer.

“It is not a question of subsidies or of the government going in as an owner, but of loans and loan guarantees on good terms,” the source said in the report.

The two car makers are important to the wider Swedish economy not only because of the thousands of workers they employ directly, but also because of the many companies that supply the firms.

The report also said the government is in talks with the two car firms and truck makers Volvo and Scania about establishing a jointly owned company to promote environmentally friendly research and development.

Editing by Mike Nesbit

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