
AI-generated summary
Rally Sweden AB organizes the Swedish part of the Rally World Championship and has received a multi-million grant from Umeå municipality to keep the competition alive. For several years, the company has made a loss and the municipal subsidies have been used to cover previous years' debts rather than to finance current operations.
The municipality of Umeå, where the competition is decided, has stepped in with multimillion-dollar grants in rounds to keep the competition alive. But according to Värmland's Folkblad, the municipal grants for next year's competitions have been used to pay off the previous year's debts for several years. After several years of negative results, the auditors have now stepped in and put an end to the scheme.
The company that runs the competition, Rally Sweden AB, made a deficit of around SEK 16 million. According to one of the newspaper's sources, it is only a matter of time before the long-standing competition, which is part of the World Rally Championship, goes bankrupt.
There are also reports of a crisis in the board where CEO Anna Nordkvist is the only member left after several defections.
AI outlook — possibilities, not facts
Rally Sweden AB will file for bankruptcy within the next few months if no new financing is secured
Likely · Within months
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