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Government Entices GM

Published torsdag 28 oktober 2004 kl 12.26
SAAB plant in Trolhättan

The Swedish government will spend some US $282 million to entice US car manufacturer General Motors to continue producing mid-size cars in south-western Sweden.

GM recently announced brutal cost-cutting measures to drive its European activities back into profit, including cutting some 12,000 jobs in Europe over the next two years. There are also plans to eventually shut down one of its two mid-range car factories: either Opel’s main factory in Germany or Saab’s factory in Trollhättan.

The Swedish government will spend the money on improving the highways leading to the Trollhättan as well as on industrial research in the Trollhättan area.

According to the daily financial Dagens Industri, Prime Minister Göran Persson plans to meet with General Motors management on Friday to discuss the plans.

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