NEW YORK (Bloomberg) — General Motors Corp. is asking Sweden to guarantee $600 million in European Investment Bank loans to keep the Saab Automobile unit operating until it can be restructured for sale, a person familiar with the talks said.

The loans, along with about $400 million (3.36 billion kronor) from GM, would allow Saab to introduce new models that would keep Saab competitive, said the person, who asked not to be named because the talks are private. If Saab doesn't get the aid, it may be forced into restructuring under Swedish law, the person said. It is "possible" that GM has told the government that any decision by Sweden not to help Saab may lead to the consequence that Saab is put into administration or closed down, said Saab spokesman Eric Geers. He declined to comment on the potential size and structure of a government aid package. GM spokeswoman Joanne Krell had no comment. GM is trying to have a solution for Saab by February 17, when it must present a progress report to the US Treasury on how it will become viable so it can repay $13.4 billion in government loans by 2011. On Tuesday, GM said it would cut 10,000 jobs and trim US salaries as it negotiates for concessions from the United Auto Workers union and bondholders.

GM, Saab and the Swedish government are in a "continuous dialogue" about aid for Saab as GM must have a plan ready by next week, Geers said in a telephone interview yesterday. GM said December 2 it would seek a buyer or other options for Saab.

Sweden's government has pledged 28 billion kronor to support automakers including Volvo Cars and Saab Automobile. The package, which aims to spur development of fuel-efficient vehicles and ease the manufacturers' access to funding, provides Sweden's carmakers with a 5 billion kronor rescue loan.