Stockholm - The Swedish government unveiled a 28-billion- kronor (3.4 billion dollars) package Thursday aimed at securing the long-term viability of Swedish-based vehicle makers.

The government was to reserve 3 billion kronor for a research and development institute "to develop vehicles customers want," Deputy Prime Minister Maud Olofsson said.

There was demand for vehicles with lower emissions that could run on new fuels and electrical vehicles, she said.

Some 5 billion kronor was to be used for "rescue loans" for companies that were part of the vehicle cluster.

The plan also included offering credit guarantees worth at most 20 billion kronor for companies wanting to draw loans from the European Investment Bank, said Olofsson, also minister for enterprise.

The credits hinged on the companies being able to present a sound business case with good ideas and business plans.

Olofsson said the government has had "intensive talks with General Motors and Ford, and other European governments."

Ford, the US owner of Swedish carmaker Volvo, and General Motors, which owns Swedish-based Saab, have said they were considering selling their Swedish subsidiaries, casting doubts over the future for the Swedish vehicle industry.

Olofsson said the "guiding principles were that jobs should remain and be developed here, and that the state should be active."

Both Olofsson and Finance Minister Anders Borg, speaking at the same news conference, ruled out the state as an owner.

Borg said the state "will use its influence over how funds are used in order to secure production, development and transition to green vehicles."

Union representatives at Volvo and Saab welcomed the move, as did Christer Karlsson, an expert on the Swedish vehicle industry, with the Copenhagen Business School. (dpa)