Swedish government set to guarantee loan for Volvo

While Swedish government isn’t guaranteeing any loans for Saab until it can find a private investor, Sweden’s Industry Ministry state secretary Joran Hagglund said that the government is set to guarantee a loan for Volvo.

According to a report by financial daily Dagens Industri, the Swedish government would guarantee up to 90 percent of a 5-billion-kronor ($573 million USD) loan. The remaining 10 percent would be secured from various sources.

The government seems to be pretty kind to Ford-owned Volvo when compared to Saab, reports Automotive News.

“Unlike GM, Ford has clearly stated they will take full ownership responsibility and guarantee capital flows to Volvo Cars until they have found a new owner for Volvo Cars,” Hagglund said.

Volvo was put under strategic review by Ford in December. It said that a sale could take several months to complete. Volvo’s global sales in 2008 totaled 359,000, down from the 482,000 it sold in 2007.