The Swedish government has announced $3.4 billion in support for its automakers, which includes Saab and Volvo. The aid will come in the form of credit guarantees, emergency loans and research funds, according to the Associated Press.
Saab is owned by GM and Volvo by Ford. Both of the major Swedish auto companies are going to be sold in the near future so that Ford and GM can focus on their core brands. This support money will make the sales of Saab and Volvo much easier.
“The measures will be taken with the clear assumption that the state does not intend to acquire any of the existing automotive manufacturers," A Swedish government official said. "They are also based on continued openness in relation to the ongoing process in the U.S. automotive industry and conclusions drawn by current or any new owners."
The Swedish auto bailout comes just hours after members of the U.S. House of Representatives approved a $14 billion bailout for U.S. automakers. The Senate still needs to approve the bailout before money can be made available to the Big Three.
Saab and Volvo cars, like the XC70 pictured here, have small but passionate cult followings.