U.S. Auto Woes Endanger Swedish Economy

By Alan Stewart Carl | Related entries in Business, Cars, Sweden

null

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.


This entry was posted on Wednesday, December 10th, 2008 and is filed under Business, Cars, Sweden. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply


NOTE TO COMMENTERS:


You must ALWAYS fill in the two word CAPTCHA below to submit a comment. And if this is your first time commenting on Donklephant, it will be held in a moderation queue for approval. Please don't resubmit the same comment a couple times. We'll get around to moderating it soon enough.


Also, sometimes even if you've commented before, it may still get placed in a moderation queue and/or sent to the spam folder. If it's just in moderation queue, it'll be published, but it may be deleted if it lands in the spam folder. My apologies if this happens but there are some keywords that push it into the spam folder.


One last note, we will not tolerate comments that disparage people based on age, sex, handicap, race, color, sexual orientation, national origin or ancestry. We reserve the right to delete these comments and ban the people who make them from ever commenting here again.


Thanks for understanding and have a pleasurable commenting experience.


Related Posts: