EU investigates Saab loan guarantee

• Source: Global Times
• [14:37 December 01 2009]
• Comments

Jonathan Todd, the EU spokesman.

The European Commision is continuing its research on Sweden's request to provide a loan guarantee to Saab Automobile AB, a spokesman said Monday, while General Motors Co., which owns the Swedish car maker, is ready to make a decision on the future of Saab.

"The commission is still investigating the proposed state aid for Saab," said EU spokesman Jonathan Todd.

The European Investment Bank (EIB) provided a 400 million euro ($601 million) loan to Saab on October 21 on the condition that the Swedish state must act as guarantor. Sweden has asked the EU to look into the case to make sure the guarantee won't be considered as improper state aid.

GM held a regular board meeting Monday and it is expected to announce Tuesday whether it will try to find another buyer or shutter the brand after the plan of selling Saab to Koenigsegg Group AB fell through last month.

A delegation which is made up of Saab executives and the Swedish government is traveling to Detroit to press the case to save the car company.

Koenigsegg was close to finishing the deal after the EIB loan was approved, but later it pulled out and said that there were some uncertainties in closing the deal.

Todd said Sweden had told the commission about the plan to offer loan gurantees in October, but it just received some specific detail information about the plan last week.

"The commission can't be accused of becoming the burden to Saab," Todd said.

Agencies and Wang Yang contributed to this story