Business Abroad: Surging Swedes

By strict economic logic, Sweden should not have an auto industry. Its population of 7,500,000 is too small to support mass production of cars. Its low tariffs make it an alluring market for foreign automakers. Its wages—Europe's highest—prevent Swedish producers from underselling foreign cars at home, let alone abroad. But Volvo and Saab, two rival Swedish cars, are both speeding ahead.

Volvo last year made a profit of $3,800,000, while Saab increased its profits from 1960's $1,557,000 to $2,020,000. Between them, Volvo and Saab hold 34% of the Swedish auto market. More...

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