There’s probably a whole lot more about this already known through the Swedish newspapers, but seeing as I don’t have the time nor the capacity to find or translate the stories, let’s kick things off with this snippet and let the Swedes reading this contribute what they know (if there’s anything to contribute, that is).
German publication, Welt Online, has a short story this morning that translates as follows:
Sweden’s Finance minister Anders Borg may have arranged some help for profit losing manufacturers Volvo and Saab. Borg said in Stockholm at the presentation of a new economic forecast, “targeted measures” could be used to stabilize the labor market as necessary. He didn’t give details. Saab are as one with Opel in Germany, who together are affiliated to a depressed GM in the US. Volvo’s parent, Ford, is also fighting with high losses.
In related news, Volvo’s parent company has just sold a portion of it’s ownership stake in Mazda, raising $540m in the process.
Ford Motor has raised $540 million after selling 20 percent of its 33.4 percent stake in Mazda.
The sale means that Ford will end 12 years of control of Mazda. The U.S. carmaker first took a stake in the Japanese carmaker in 1979…..
…..Ford said it would continue its partnership with Mazda despite reducing its holding to 13 percent from 33.4 percent. Mazda and more than 20 of its business partners have bought the Ford shares, which was forced by Ford’s need to raise money.
“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Ford CEO Alan Mulally in a statement.
Ford and Mazda will continue their joint ventures as well as the sharing of platforms and powertrains.
This really is one of the most turbulent times I’ve ever seen whilst even casually watching the car business.
And still, there’s no buyer for HUMMER.
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If any of you Swedes have any more news on help offered to Saab and Volvo from the Swedish government, please chip in via comments.
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Thanks WooDz!!
Here is an article from Dagens Industri.
According to a spokesperson at Volvo Cars the talks are about stimulating research and development, and support to fired people.
“We are not discussing any loans with the government.”
(The source for the article is Dow Jones Newswires.)
Here is a fresh article from CNN Money.
Also this:
The European Commission (Croes) has just let known that according to EU-competition regulations, support for individual carmakers unacceptable is and that only support for the total automotive sector acceptable is …
E.g. : measures to promote buying cars instead of a loan to a certain carmaker.
Van God, that makes perfect sense actually. I would imagine European automakers would have to rely on their national (and in some instances even local) governments for direct financial support.
I’m afraid you misunderstood me.
The European Commission just announced that it is forbidden for national or regional authorities to give direct support to carmakers (e.g. a loan for a volvo/opel/…) and that only indirect support for the automotive sector is acceptable (e.g. measures that promote buying new cars).
Oh, that changes things a little bit then… Perhaps that is why Volvo and Saab are talking about indrect suppot from he Swedish Govenmentrather than drect aid.
You can be sure that France, Germany, and Italy don’t care a rats *** about what EU thinks in a situation like this…
@ctm : well, don’t be so sure about that. If the government of France, Italy, … gives support to PSA/Fiat/… and does not respect the EU competition rules, those companies can be obliged to pay back all received support.
When it comes to competition, the EU can impose it’s will on (local) governments and companies. That’s why the European Commission already – before any financial help was given – made clear that it will not accept that governments would give direct support to the automotive industry.
Just an example : The European Commission has just forbidden Italy to give a rescue credit to Alitalia (the “official” Italian airline company). And guess what, Italy did not give that credit line to Alitalia (even though Berlusconi had already promised financial help).
Easy measures could be taken to uppen Saab sales and make Saab contribute to the GME pocketbook and not nicking from it.
Let Saab and Opel have a talk over what could be done to help their sales. How much more could they cooperate. In Sweden for instance it has for several years been almost mandatory for Saab dealers to also sell Opel.. Why not do the same in Germany? On the tech side that would not be a problem since the two syblings share a lot of components.
The HUGE problem IS that in Sweden Saab dealers treat Opel like something the cat draged in and I guess in Germany most Opel dealers wont accept Saab as their more “premium” sybling. Well it´s time for everybody involved to see that Opel IS one he*k of a good car and that Saab IS Opels sybling with loads of shared components but with a twist, their own design, in some cases components with higher quality etc.
Saab and Opel should be what Audi and VW is to one another. You could ask any Audi owner if he recognize VW (or the other way around) as a sybling and 95% would say Yes. Ask a Saab owner or Opel owner and 25% would say Yes. There is not a mutual respect within the two companies, not a clear line between who is premium and who´s not. And WE (or many of us) should be ashamed becase of the way we speak of Opel.
If Saab dealers in Sweden would be more humble towards Opel then more Opels would be sold and those customers not lost to ex VW. And if more Opel dealers in Germany would be more humble towards Saab, then Saab would get more registrations.. Registrations that now go to ex Audi.
Ok?
/Tompa
van god los:
Reported statement from the EU industry commissioner:
“He also said that the EU would not consider the assistance offered by the German government as anti-competitive towards other European car makers, because Opel’s problems were being caused by the decline of a US firm.”
The industry commissioners name? Günter Verheugen. He just happens to be a German politician. What a coincidence…
It seems that Renault is now asking the French government for a €40 billion ($50 billion) loan. Maybe the EU regulations only apply in some instances?
Can´t Renault ask for money from it´s partner Nissan?
I’m quite sure about the EU regulation thing (I’m a lawyer who works for, amongst other firms, the automotive industry).
The commissioner in charge of imposing the competition rules is the Dutch Mrs. Croes. And she’s quite firm about not giving any direct support. I understand that the German commissioner is doing some smooth talking on behalf of his country/government but he doesn’t have a rats a** to say when it comes to competition and direct support to the automotive industry.
They made an exception for the banks because – according to the EU commission – the whole economy would fall if the banks would go bankrupt. The bankruptcy of opel (or PSA/fiat/…) would be a great loss but it would not make the (business) world stop turning.
But of course, if the political pressure is strong enough, Croes just might have to accept direct financial support (but for the moment she will not approve direct support).
van god los
That is what I fear. I like the way they try to have a European regulation to avoid countries subsidizing industries and create an anti-competitive situation. But I guess that when the going gets tough, it will be every country for themselves due to political pressure…
WIESBADEN, Germany (AFP)–A German regional state passed a law on Wednesday giving automaker Opel EUR500 million in loan guarantees in case parent company General Motors Corp. (GM) goes bankrupt.
http://money.cnn.com/news/newsfeeds/articles/djf500/200811191117DOWJONESDJONLINE000673_FORTUNE5.htm
STOCKHOLM, Nov 24 (Reuters) – The Swedish government on Monday ruled out any financial support for the Nordic country’s crisis-hit automakers Volvo Car Corp and Saab Automobiles until the intentions of their U.S. parent companies became clear.
http://www.reuters.com/article/privateEquity/idUSLO13445820081124