GM Generali

STOCKHOLM (AFP)--Swedish automaker Saab wants to tap the European Investment Bank for emergency funding as its U.S. owner General Motors Corp. (GM) prepares to sell the company, Sweden's minister for enterprise and energy said Tuesday.

Maud Olofsson told Swedish television that "it is clear that GM wants to sell Saab," adding that the government will act as a guarantor for any EIB loan to Saab.

U.S. auto giant GM had announced in December it planned to sell Saab, but the loss-making Swedish brand needs extra funding to secure its survival.

Discussions on securing a loan initially took place between Saab, GM and the Swedish government at the start of December. Swedish press reports say Saab is seeking to borrow as much as EUR475 million.

Meanwhile, General Motors, after securing just over $9 billion in emergency funding in January, will present a restructuring plan to the U.S. Treasury late Tuesday - believed to include establishing Saab as an independent company.

Volvo Cars, owned by U.S. automaker Ford Motor Co. (F), already requested a loan of EUR475 million from the EIB at the end of January.

Around three-quarters of a rescue plan for the Swedish car industry amounting to 28 billion kronor (EUR2.7 billion) consists of Swedish government guarantees for loans from the EIB.