Geely Automotive Holdings (GELYF)

[I Like Bottom Fishing]

GELYY News DJ Swedish Government Provides Guarantees Of SEK3.5B To Volvo Cars.

Wednesday, December 22, 2010 5:38 AM

Scottrade.com
This email is compliments of Scottrade.com

News for 'GELYY' - (DJ Swedish Government Provides Guarantees Of SEK3.5B To Volvo Cars)

http://online.wsj.com/article/BT-CO-20101222-703008.html?mod=wsjcrmain

http://online.wsj.com/public/quotes/main.html?symbol=GELYY&type=pinksh&mod=DNH_S

STOCKHOLM (Dow Jones)--The Swedish government said Wednesday it will provide state guarantees of 3.5 billion Swedish kronor ($513.7 million) to secure the European Investment Bank's loan to Sweden-based car maker Volvo Cars, owned by Geely Automobile Holding Ltd. (0175.HK).

Last week the European Commission approved the terms of the Swedish government's state guarantees to Volvo Cars.

The previous negotiations for Volvo Cars' EIB loans were put on hold in the spring when Volvo Cars was sold to the Chinese automaker. The Swedish government wanted a clearer picture of Volvo Cars' ownership structure before it continued negotiations.

"It seems as if several of the companies within the Swedish automotive industry are getting back on track with companies, such as truck-makers Volvo AB (VOLV-B.SK) and Scania AB (SCV-A.SK) posting rising sales," Enterprise Minister Maud Olofsson said during a press briefing, adding that the Swedish government has spent some SEK12 billion aiding the automotive industry during the economic downturn.

"It feels more comfortable being the responsible minister for this area now than it did one year ago," Olofsson added.

Speaking to Dow Jones Newswires Nov. 11, Volvo corporate spokesman Per-Ake Froberg said Volvo Cars plans to use the loans for a number of environmental projects that are either ongoing or about to be launched.

-By Jens Hansegard and Sven Grundberg, Dow Jones Newswires; [phone]; [e-mail]

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=zWel62OgHaw6Pv0p6HXkJg%3D%3D. You can use this link on the day this article is published and the following day.

http://online.wsj.com/article/BT-CO-20101222-703008.html?mod=wsjcrmain

http://online.wsj.com/public/quotes/main.html?symbol=GELYY&type=pinksh&mod=DNH_S


(END) Dow Jones Newswires

December 22, 2010 05:37 ET (10:37 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 05 37 AM EST 12-22-10

Source: DJ Broad Tape