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WEDNESDAY, NOVEMBER 25, 2009
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Sweden to Saab: Tough Luck

The G.M.-owned Swedish automaker seeks a buyer to save itself

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(Newser) – As governments around the world have propped up their automobile companies, typically paternalistic Sweden has answered Saab’s plea for help with an unexpected reply: “No.” No bailout, no takeover. The town of Trollhattan in southwest Sweden now faces economic catastrophe akin to Detroit’s decline as its 54,000 people will lose 4,000 jobs overnight if Saab collapses, the New York Times reports.

Saab lost $343 million last year and is just steps shy of bankruptcy. The company, known for innovative engineering, sold 93,295 vehicles worldwide last year—only 21,383 in the US. General Motors, owner of Saab, has pledged to withdraw from the company completely by the end of the year, and the company has already announced that 750 jobs will be cut.

In this Feb. 18, 2009 file picture, workers enter the Saab factory in Trollhattan, Sweden. Automaker Saab filed for bankruptcy protection Friday Feb. 20, 2009.
In this Feb. 18, 2009 file picture, workers enter the Saab factory in Trollhattan, Sweden. Automaker Saab filed for bankruptcy protection Friday Feb. 20, 2009.   (AP Photo/Scanpix, Erik Abel, File)
The Saab logo is seen on a 9.5 Sedan at the Saab of Troy in Troy, Mich., Thursday, Feb. 19, 2009.
The Saab logo is seen on a 9.5 Sedan at the Saab of Troy in Troy, Mich., Thursday, Feb. 19, 2009.   (AP Photo/Carlos Osorio)
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The fact that they are so passive is every day now making it worse and jeopardizing the possibility of having Saab still in Sweden.
- Tomas Eneroth, Swedish member of Parliament

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