STOCKHOLM — General Motors is asking Sweden to guarantee $600 million in European Investment Bank loans to keep the Saab Automobile unit operating until it can be restructured for sale, a person familiar with the talks said.
The loans, along with about $400 million from GM, would allow Saab to introduce new models that would keep Saab competitive, said the person, who asked not to be named because the talks are private.
It is “possible” that GM has told the government that if Sweden doesn’t help Saab, it may be put into administration or shuttered, Saab spokesman Eric Geers said. He declined to comment on the potential size and structure of an aid package. GM spokeswoman Joanne Krell had no comment.
GM is trying to have a solution for Saab by Tuesday, when it must present a progress report to the U.S. Treasury on how it will become viable so it can repay $13.4 billion in government loans by 2011. Bloomberg News
