GM Needs Plan Before Payout in Sweden

January 29, 2009 Updated: January 29, 2009

STOCKHOLM—General Motors Corp. (GM) has begun negotiations with the Swedish government for loan guarantees to save Saab, their affiliate company in Sweden. When Jöran Hägglund, Swedish Secretary of State, visited Detroit last week, he was given promises to have a full view of how GM would deal with the issue.

To receive the loan guarantees, Saab’s operations must be separated from the other companies owned by GM, and GM must present a new business plan. GM also guaranteed that the billions of Swedish kronors (SEK) from the government would not commingled with GM operations in the U.S.

GM is still needs more time to present a reliable business plan during negotiations, Jöran Hägglund of the Ministry of Enterprise, Energy and Communications, said to the Swedish Radio on Jan. 27.