U.S. Auto Woes Endanger Swedish Economy
If you think the woes of the American automotive industry have been stressful for Americans, imagine the situation in Sweden where Saab (owned by GM) and Volvo (owned by Ford) are in danger of extinction.
Now, the Swedish government is faced with the question of whether or not to provide a bailout for the two companies.
Much like in the U.S., the Swedish car manufacturers are integral to the health of the nation’s economy not only because they employ thousands directly but because they also keep numerous suppliers in business. Few in Sweden want to lose Volvo or Saab but there is only so much the nation can do.
In many ways, the fate of those brands are tied directly to the fate of GM and Ford.
Obviously, American lawmakers are focused on American jobs. But the failure of GM and Ford to achieve profitability with their Swedish-made brands (brands that were in good shape before they were purchased) is yet another example of how both companies have mismanaged their business on a wide scale.