Belgium to Help Volvo Stay on Its Feet

While Volvo is still encountering difficulties when trying to receive financial support in its native country, the car manufacturer is about to snatch around 300 million euros ($418 million) in Belgium. Basically, the Belgian government is willing to provide financial assistance to the Swedish manufacturer in order to keep the doors open of its production facility in the Flanders region. In other words, the country agreed to give money to the ailing automaker in order to preserve jobs and "force" the manufacturer to continue operations in Belgium.

A decision is expected by June 7, MotorAuthority.com wrote today, as the Flemish Premier Kris Peeters has already talked with Volvo CEO Stephen Odell over a potential loan guarantee. While we're not going to talk about political issues, it appears that June 7 is close to the election date in the region, which might give us a hint into the deadline the Belgian official has set.

Getting back to Volvo's economic situation, the country has asked the company, just like in the case of many other automakers seeking financial support from governments, to continue operations in the country, without reducing workforce or lowering production. Additionally, the country's officially have asked Volvo to provide clear details regarding the company's long-term plans before approving the funds.

Volvo is currently up for sale as its parent company Ford is looking for an outside investor that could take over the Swedish brand ever since January this year. According to various media reports, there are approximately five bidders interested in purchasing Volvo but none of them has managed to reach an agreement with Swedish officials and Ford's representatives.