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Sweden's industry minister Tuesday told Dow Jones Newswires it was "very difficult to say" whether Saab Automobile AB will succeed in finding a new owner that will allow it to survive after General Motors Corp. (GM) cuts its ties.

"Saab needs (a new owner) that has a lot of capital and can be a long-term owner, and who has a business plan for what they will do with Saab in the future," Maud Olofsson said in an interview.

Olofsson plays a key role in determining Saab's future. She will help decide whether Sweden's government will guarantee a EUR500 million loan that Saab is seeking from the European Investment Bank. The loan is a cornerstone in Saab's plan for transition to a new owner and a return to profitability. The EIB will not approve the loan without Sweden's guarantee.

Olofsson reiterated the government's stance that it won't guarantee the loan before Saab presents a new owner that the government deems viable.

"There must be a new owner and then they can come to us and request loan guarantees," she said.

"It can't be determined" right now whether Saab will succeed in its efforts, she added.

She also reiterated Sweden's opposition to taking a stake in the company.

"We are not going to own an auto company," she said.

Saab spokeswoman Gunilla Gustavs said she agrees with Olofsson's views that Saab needs an owner with deep pockets and a solid long-term plan. She said Saab now is negotiating with "two or three" undisclosed potential buyers and that the car maker "shortly" plans to publicly identify a "primary candidate."

Swedish Prime Minister Fredrik Reinfeldt in a speech Tuesday about the country's coming role as president of the European Union showed little ambition to save Saab.

"The problem with the car industry lies in the overproduction of cars that nobody wants to buy," he said. "Well, I must tell you: when a ship is sinking my main aim is to save the sailors - not the ship."

Company Web site: www.saab.com

-By Ola Kinnander, Dow Jones Newswires; +46-8-5451-3097; ola.kinnander@dowjones.com