US automakers have turned into some pretty bold panhandlers. First, Chrysler's current owners decided to sue former proprietor Daimler for 7 billion US dollars because of 2007 losses that they think Daimler should eat instead of them. Strangely, that is the same sum they are seeking from a possible US government bailout. Now, GM and Ford have gone to the Swedish government in search of cash for their ailing Saab and Volvo brands, respectively.
Panhandling is maybe a crude way to put it but it does seem that the Big 3 have gone haplessly scrounging for quick cash without a real strategy for securing new capital or a comprehensive plan for the kind of radical restructuring the companies desperately need.
The Financial Times is reporting that Saab Managing Director Jan-Ake Jonsson and Volvo CEO Stephen Odell have both talked to Sweden's industry minister, Maud Olofsson and made requests for aid.
The Swedish government is considering a 2 billion Krona (248 million US, or 195 million euro) bailout for the Swedish auto industry, in the form of direct aid or loan guarantees.
US lawmakers, still considering a 25 billion dollar bailout for the Detroit automakers, are weary of giving money to the industry that may be used to prop up operations outside of the United States.
Volvo lost $458 million US dollars for Ford in the third quarter of this year. Saab has never made a profit since GM first bought a stake in the company in 1989.
RussianMafia
December 1, 2008 2:46 PM
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