Just in case the US Congress will not bailout Ford (NYSE:F) and GM (NYSE: GM), the car companies are turning to the Swedish government to help their Volvo and Saab units. The government there does not want to see a lot of lost jobs, so it might just put up some money to help out the US firms.
According to the FT, "Stephen Odell, Volvo's chief executive, and Saab's managing director Jan-Ake Jonsson have separately spoken to Maud Olofsson, Sweden's industry minister, and other officials about securing funds." The American firms have decided to sell the businesses, so Sweden may need to keep them on life support until that happens.
The move shows how desperate the US car companies are. While they may not be able to get the US government to provide them aid, they can appeal to Sweden on the basis that Saab and Volvo are huge employers in the country. Real trouble for the division could raise unemployment in the Scandinavian country causing it to pour unemployment and other social services capital into its economy,
Americans begging in Sweden. Nice picture.
Douglas A. McIntyre is en editor at 247wallst.com.











Reader Comments (Page 1 of 1)
12-01-2008 @ 6:40AM
lou said...
Who says socialism in its purest sense isn't better than American capitalism when it comes to employment and decent paying jobs? True socialism as you can see does not like hand-outs either, so they will do what is needed to ensure the employment of their people. Millions of americans could use that kind of help now. Only 40% of workers in the US can collect unemployment. States cannot afford the aid that is now needed with the poverty that has been created through "trickle down economics" and tax breaks for American corporations that leave this country. The wages of our hard working men and women have decreased dramatically (if they are lucky enough to still be employed). I believe our leaders knew this would happen and wanted it to, so they could destroy unions and labor laws. That was Reagan's favorite target. What's wrong with people making a living wage through unions? Some things Reagan forgot. If the majority of people make poverty wages no one can buy extras like insurance or food which shuts down other non-union jobs. No one can save or barrow, so banks go down. Taxes cannot be collected except from the rich so the government shuts down. Too many cuts to the states under the Bush administration has hindered what is needed most now. What does it say about the US if our political leaders will not help Americans stay employed? Thank the US democrat congress and republican lame-duck Bush for this embarrassment. It appears to be a bi-partisan effort to destroy the American economy even more.
12-01-2008 @ 8:26AM
Michael Weekley said...
President Bush seems to get most of the blame for the financial mess that is destroying this country. He certainly deserves blame for the Iraq debacle but to let the Democrats escape without that fair share of the blame is wrong. They are responsible for the majority of the pork barrel spending associated with lobbyists & adopting special project spending in their respective states. To give billions to banks that retain the same management that put the banks in peril in the first place is insanity. I believe the reason that no arrests of bank personnel have been made is because the trails will lead back to the politicians.
12-01-2008 @ 8:28AM
Jim Harden said...
My response to Lou's message:
you make some credidble points, but you lost me and your credibility when you referred that with poverty wages extras were food & insurance.
Last time I checked, these were basic necessities, not extras.
12-01-2008 @ 8:52AM
Jerry said...
For 40 million Americans Insurance is an EXTRA and not something they can afford. You are nieve if you think that everyone has auto insurance. I attend traffic court on a regular basis and it seems at least 60 percent DO NOT have auto insurance. They buy a 30 day policy and show it to the judge each time they get a ticket. After paying a fine they let the insurance run out until the next ticket! Over 45 percent of Americans have NO life insurance. AND as reported over 40 milion have no health insurance. Of this 40 million over 50% have jobs with NO bennefits with health insurance out of reach do to the cost. YES, I believe that a Sweden's hybrid form of socialism is the best system in the world. The built in greed of western capitalism basically evil since it stands on house of cards. Any economy with CREDIT as the MAIN playing card is a "BAD" system and is a smoke and mirrors game. SO, don't cry when it fails, as it always will ! ! ! ! ! ! !
12-01-2008 @ 9:25AM
Dan said...
I laugh a little when I hear Republicans keep playing that broken record " Well the Democrats have had control of Congress for two whole years now. Why haven't they fixed everything yet? " Now what you do not hear is these Republicans who bragged about voting for Bush Jr twice saying that Bush and the Republicans had total control of the first six years of the Presidency and Congress. Six whole years to muck things up and with the presidency and both houses. How about bragging about that? Republicans will not eat crow and cannot accept any responsibility here period. Denial of Responsibility is why we are in such a mess now and the Republicans want to perpetuate the situation because that is all they know. Sad.
12-02-2008 @ 12:00PM
jpdr1100 said...
Dan, well said.
Not only do the Republicans still control the White House (though wish they could forget that), but the Dems barely have control of Congress. In the Senate the count is 49-49-2.