Latest news on Sweden auto industry
Saab, a major auto maker of Sweden auto industry is going to delay its production of new models for a while. It is also putting its development and research activities on hold. These steps are being taken by Saab in order to deal with financial problems.
Importance of auto industry in Sweden
Sweden auto industry has an important role to play in context of its economy. Volvo Group, which is among major auto establishments in Sweden, exports cars worth SEK 140 billion on a yearly basis. This is equivalent of 15 percent of average annual exports of Sweden.
Volvo, in association with Chalmers University of Technology, has decided to increase scope of its collaborative research projects. It aims at producing diesel engines, that are more environment friendly and enhance safety and electronic facilities of its cars.
Financial aid to auto industry of Sweden
On 11th December Swedish national government announced that it would be providing Sweden auto industry with a financial package worth 3.5 billion dollars. This money would be provided for purposes of research and development. There would also be state credit guarantees that would be useful for taking loans from European Investment Bank. This move came immediately after a US financial package, worth $14 billion, was announced for its ailing automobile industry.
Much of this financial aid for Sweden auto industry is directed towards Volvo and Saab, both of whom are owned by American companies Ford and General Motors respectively. Both Ford and General Motors had made it clear that they would need state financial aid in order to survive.
Swedish government has been waiting for US government to declare its economic aid packages before announcing any of its own. However, it has stated clearly that it would not be taking over auto makers in Sweden who have been finding it hard to survive.
Sweden's finance minister Anders Borg has stressed that national government would make every effort to help these companies and create an environment whereby they can function effectively. As part of this financial package an amount of 20 billion kronor has been set aside for companies that wish to take loans from European Investment Bank for usage of environment friendly technologies.