Tags: saab | sweden | gm

Sweden to Saab: No GM-style Bailout

By    |   Wednesday, 25 Mar 2009 02:14 PM

Socialist Sweden told financially troubled Saab motors there will be no government bailout similar to the U.S. efforts to rescue General Motors.

Saab will therefore most likely sink, along with the fortunes of the Swedish city of Trollhattan, whose citizens are as dependent on Saab for their livelihood as the people of Flint, Michigan, are on GM.

"The Swedish state is not prepared to own car factories," Sweden's enterprise minister, Maud Olofsson, told The New York Times.

Ironically, Sweden's usually soft-hearted, socialistic paternalism toward labor and business is nowhere apparent in this modern, free-market world solution just as the U.S. spends billions to save its uncompetitive global car companies.

Sweden hasn't suddenly gone capitalist, but since the election of a right-leaning government in 2006, old, socialist attitudes toward workers and their problems have been fading.

Union leaders in Sweden are troubled over the government's willingness to let a renowned brand like Saab fold. Saab, by the way, is owned by GM, a fully unionized shop.

Saab won’t be getting any help from parent GM either. GM has announced it will abandon Saab by the end of 2009.

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Socialist Sweden told financially troubled Saab motors there will be no government bailout similar to the U.S. efforts to rescue General Motors.Saab will therefore most likely sink, along with the fortunes of the Swedish city of Trollhattan, whose citizens are as dependent...
saab,sweden,gm
187
2009-14-25
Wednesday, 25 Mar 2009 02:14 PM
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