Sweden won't save Saab

Sweden's government has reiterated that it will not provide financial support to rescue Saab.

The government was called upon to put together a rescue package after GM announced it was closing the brand down with immediate effect.

Swedish enterprise minster Maud Olofsson lamented the "very sad" news, but said the government was not in a position to help - whether or not a renewed bid by Spyker for the company was a success.

"We don't have the expertise and we don't have the money," she said. "It is very bleak. Very sad news for all of the employees and it comes at the worst possible time."

Olofsson has called a meeting between union representatives, authorities and Saab to discuss the situation in Trollhattan today (Monday).

"I don't think GM really knows how the wind-down is going to take place, but GM has to take its responsibility," Olofsson said. "The most important thing right now is to take care of the employees and the future, how to make the most of their know-how."

Saab employs about 3400 people in Sweden.

Reports suggest Saab's closure could lead to more than 8000 job losses, when sub-contractors and other dependents are taken into account.

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