Dispute over Car Crisis

General Motors’ official filing for bankruptcy on Monday has led to a sharp political controversy in Sweden. On hearing the news Prime Minister Fredrik Reinfeldt said it was a good thing that the government had not listened to opposition leader Mona Sahlin and the metal union with their demands to pump money into the bankrupt automaker.

The Social Democrats in turn accused the center-right government of lacking a useful strategy to save endangered Swedish car manufacturer SAAB who is still formally owned by GM and looking for a new owner.

Metal union chairman Stefan Lövfen on the other hand denied that the union had proposed to send money to GM. He said that what the union wanted was to support SAAB in its struggle to secure its existence.

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