Business News
Swedish carmaker Saab clears hurdle with EIB decision
Oct 21, 2009, 14:20 GMT
Stockholm - Swedish carmaker Saab Automobile cleared a hurdle Wednesday when the European Investment Bank (EIB) board approved a 600-million-dollar loan.
The loss-making carmaker however also needs approval from the Swedish government - that has to guarantee the loan - as well as get a nod from the executive European Commission.
The European Commission has to investigate that the loan guarantee does not violate rules on state subsidies.
The EIB funds were to be used for research and development of safer and more environmentally friendly cars.
Saab's current owner, US group General Motors (GM), earlier this year said it planned to shed the Swedish subsidiary.
The carmaker filed for bankruptcy protection for a six-month period. A consortium structured around a low-volume Swedish sportscar maker, the Koenigsegg Group is hoping to buy Saab.
The consortium recently announced plans to include Beijing Automotive Industry Holdings (BAIC) as a minority owner but negotiations are still ongoing.
GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.
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