The Swedish government has said it is not prepared to take over Saab, General Motors' loss-making Swedish subsidiary.
Sweden's Industry Minister Maud Olofsson said she was "deeply disappointed" after GM CEO Rick Wagoner said Saab could be forced to file for bankruptcy by the end of the month without Swedish state funding.
"What GM says is that they wash their hands of Saab and drop it into the laps of Swedish taxpayers," Olofsson said.
Olofsson said a company reorganization of Saab was "the most realistic path."
"This could offer possibilities to develop the parts of Saab that are very good," she said, underlining that such a move was up to GM.
"The Swedish state and taxpayers will not own car plants," she added.
GM failed to mention the future running costs even if the Swedish state gives Saab a 5-billion-kronor ($571 million) loan guarantee, Olofsson said at a news conference today.
On Feb. 17, when GM unveiled its latest restructuring plan, the U.S. carmaker said it is seeking financial help from Sweden "given the urgency of stemming sizeable cash demands associated with Saab operations."
GM's Wagoner said he could not see GM retaining ownership of Saab and the company could be spun off into an independent business from January 1 2010.
Wagoner said: "Somebody needs to come in and take over the business in the near term."
Wagoner said that any buyer of Saab could have access to GM technology.
In December, Sweden outlined a plan to save its auto industry by offering credit guarantees and emergency loans, but said it had no plans to buy a stake in Saab. GM and Sweden have yet to agree on terms an aid package.
"They've been very open and the dialogue has been positive, but we haven't found the solution yet," GM Chief Operating Officer Fritz Henderson said of the Swedish government.
GM said in its submission to the U.S. Treasury on Feb. 17 that its Saab, Hummer and Saturn brands had generated a loss of $1.1 billion on an EBIT basis (earnings before interest and tax).