General Motors' (GM) Stock Taking A Hit

December 1, 2008 11:48 AM EST

General Motors' (NYSE: GM) came off session highs and is now trading down close to 6% or to $4.90 after Bloomberg published a story that Sweden's Government won't provide aid to Saab or Volvo.

The Swedish Government won’t provide direct aid to carmakers Saab Automobile and Volvo Cars because European Union rules ban such an action. Spokesman Haakan Lind said EU law allows other government measures to help the car industry, such as investment in R&D.

The Swedish government was considering "direct aid or loan guarantees" of about $243 million to Saab and Volvo as General Motors and Ford Motor (NYSE: F) are looking to raise cash.

Bloomberg did say General Motors has been offered $252 million in loan guaranties from the government of Spain’s Aragon region to ensure production at its plant in Zaragoza.

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General Motors Corporation (GM) is engaged in the worldwide development, production and marketing of cars, trucks and parts.
Ford Motor Company (Ford) is a producer of cars and trucks. The Company and its subsidiaries also engage in other businesses, including financing vehicles.

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