Saab Deal With Volvo Apparently A No Go

Saab Deal With Volvo Apparently A No Go

It’s no secret that Saab has been struggling since becoming ‘independent.’ The company, purchased from GM by Spyker last year has continued to face financial and supply problems, which has stunted production and resulted in sales falling far short of projected targets.

As a result, the company, in order to help pay for parts and get production rolling again, has been selling off company assets and or/ re-leasing them in some cases.

However, another issue concerns the  outstanding loan given to Saab by the Swedish Government through the European Investment Bank. With the company facing a sizable number of obstacles, there are those who feel the chances of repaying back that money are questionable at best and some assurance is needed.

As a result, perhaps not surprisingly, the Swedish media  has been circulating rumors that the government had been encouraging Volvo (now owned by China’s Geely Automotive) to acquire Saab in a possible takeover.

However, Volvo has now gone on the record, stating that no such talks have taken place and nor have any been planned for the future. In the meantime, Saab CEO Victor Mueller, is continuing to look for other sources to tap into for capital, including a number of Chinese automakers.

Back before the Spyker deal went through, Saab had been in talks with China’s BAIC, which had expressed interest in buying the Swedish automaker, lock, stock and barrel from GM.  In the end BAIC simply acquired ‘old’ Saab assets, including all the production tooling for the outgoing 9-3. However, given the current situation at Saab itself, there might be a strong possibility that BAIC could get its hands on more than just former assets of the Swedish automaker.

[Source: Reuters]