In a no questions asked, no debating, no several months discussions, no union negotiations, straight forward “NO” Sweden has effectively denied GM’s request for capital injection into Saab forcing chapter 11 for the brand. Now why can’t we do that?
From the AP:
General Motors Corp.’s Swedish-based subsidiary Saab went into court protection from creditors Friday so the unit can be spun off or sold by its struggling U.S. parent, officials said.
Preuss said $1 billion was needed to keep the company running during the reorganization. GM was ready to pay $400 million and had asked the Swedish government to guarantee the rest. “The guarantees have not materialized,” he added.
The Swedish government on Wednesday rejected a request from loss-making GM to inject money into the carmaker and there were no immediate signs that it was about to change its mind.
The funny part is that a piece of this week’s request for Billions more of US taxpayer money had GM working with the Sweden government to keep Saab afloat longer so it could be packaged and sold easier. Guess that part of the plan didn’t work out.
Talk about successful implementation…
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GM unit Saab files for protection from creditors
Karl Ritter, AP writer
Yahoo Finance, February 20th, 2009, 11:06 am EST