By Victoria Klesty and Daniel Dickson
STOCKHOLM, Dec 2 (Reuters) - Sweden's industry minister said on Tuesday governments should avoid taking part in any European auto sector consolidation and questioned whether Sweden could be a good owner for ailing car units Volvo and Saab.
Maud Olofsson, in an interview with Reuters, said she did not want to say how Sweden might respond if Ford failed to sell its Volvo Cars unit, or if General Motors were to try to sell its Saab unit and could not.
"I will not speculate on such matters," Olofsson said.
But the minister questioned the wisdom of the state owning either Volvo or Saab.
"What reason is there to believe that the state would be an owner that, to begin with, would be able to reduce deficits in these companies, that we would be able to develop new models, and be able market them?," she said.
The two subsidiaries have suffered sharp sales declines in recent months as the global financial crisis has weighed on prospective car buyers across the world.
Their owners are pushing for a bailout from the U.S. government and Ford this week announced its intent to sell Volvo, which it bought in 1999. Sweden has said it held talks with both GM and Ford about the two units.
Olofsson said European states should cooperate to foster a better market climate for fuel-efficient cars that are friendlier for the environment, but not actively take part in changing ownership structures.
"That is not primarily a political mission but something for the companies to solve themselves," Olofsson said.
"What we can do is to create conditions for a good development when it comes to the auto industry. That could be research and development, or to create market conditions that encourages Europe's consumers to change vehicles."
Detroit's three big automakers -- Ford, GM and Chrysler -- are due to submit extensive restructuring plans to the U.S. Congress later on Tuesday before lawmakers reopen debate on a $25 billion bailout the industry says it needs to survive. (Editing by David Cowell)