Sweden’s prime minister has ruled out a government bail-out for Saab Automobile and warned that European leaders must not stand in the way of efforts to tackle over capacity in the car industry.
Fredrik Reinfeldt said his government would offer credit guarantees if Saab’s parent company General Motors could find a buyer but, he said the government would not intervene if GM chose to liquidate Saab after a deal to sell the company collapsed last week.
The prime minister said: “You cannot save jobs just by pushing in taxpayers’ money if you don’t have the competitiveness to survive in a tough industry with overcapacity.”
It is understood that GM has received a number of expressions of interest from companies interested in acquiring Saab.
It is believed that Beijing Automotive, which was to have taken a minority stake in Saab as part of the now defunct Koenigsegg deal, is in talks with GM abut the possibility of making a bid for the whole of the carmaker. In addition, Merbanco, a Wyoming-based merchant bank, has also expressed an interest.
GM’s board will meet on Tuesday 1st December to decide the future of Saab.