Sweden Chucks USD3.4 Billion At It's Auto Industry

Just a couple of hours after the US House of Representatives announced it's approval for a $14 bln aid package to the US auto industry, the Swedish government weighed in with a similar $3.4 bln package for it's own auto makers.

Volvo and Saab have been appealing to the government to step in and throw them a lifeline after it seems that their US owners Ford and GM, in enough trouble at home, may be unable to do so.

The plan offers credit guarantees, emergency loans and research funds to various Swedish car makers, including the big two.

As with the US deal, the plan still has to be further approved by lawmakers.

The Swedish coalition government said it was not interested in taking part-ownership of Volvo and Saab, both of which are expected to be sold off by their US owners as part of the required US shake-up.