Two business units of America’s Ford Motor and General Motors are getting government cash infusions already. The money comes from the Swedish government, which is providing $3.4 billion to Volvo and Saab.
Volvo is Ford’s Swedish-based product, while GM is the owner of Saab.
The deal includes credit guarantees, emergency loans and money for research and development to boost companies in the “Swedish automotive cluster,” the government said, according to the Associated Press.
The Swedish government said that its aid package was needed to safeguard “the continued success of the Swedish automotive industry,” even if the industry’s crisis deepens. The AP noted that the European government also urged the development of green technology.
The Swedes announced their package a few hours after the U.S. House of Representatives approved a bill to provide $14 billion in emergency loans to the U.S. auto industry — a measure with an unsure future in the Senate.
“The measures will be taken with the clear assumption that the state does not intend to acquire any of the existing automotive manufacturers,” the Swedish government said in a statement. “They are also based on continued openness in relation to the ongoing process in the U.S. automotive industry and conclusions drawn by current or any new owners.”