The Local: Volvo Cars makes bid for Saab's manufacturing and testing equipment

[SaabWorld]

Swedish automaker Volvo Cars has placed a bid for large parts of its bankrupt counterpart Saab Automobile.

Volvo has previously expressed its interest in acquiring some of Saab's assets and has now placed a bid, Svergies Radio (SR) reported.

However, Volvo officials were reluctant to shed any light on the bid.

“It's up to the bankruptcy administrators to comment on the bidding,” Volvo spokesperson Per-Åke Fröberg told SR.

He confirmed that Volvo remains interested in some of Saab's manufacturing and testing equipment which could be used in Volvo's own operations rather than for restarting production at the Saab factory in Trollhättan in western Sweden.

Citing unnamed sources, SR reported that Volvo wants to buy all the existing equipment in Saab's factory.

The machines and other equipment would then likely be moved to Volvo's plant in Torslanda in western Swedne or to China for use in a production facility to be built by Volvo and current owner Geely.

Read more: Volvo Cars makes bid for Saab: report - The Local

[rpiereck]

The vultures keep circling.

[nordwulf]

If the other bidders won't work out, at least someone will make good use of all the equipment.

[SaabWorld]

Filed under: China, Etc., Europe, Plants/Manufacturing, Saab, Volvo, Earnings/Financials, Geely


Volvo is reportedly interesting in getting out its checkbook in search of a production parts bargain over at Saab. No, the 9-5 likely won't be wearing a Volvo badge any time soon, but the tooling that helped build parts for the big sedan could one day be in a Volvo factory.

SaabsUnited quotes an unnamed source who states that Volvo is interested in purchasing tooling from the Saab bankruptcy estate. The source reiterated that Volvo isn't interested in any production at the Trollhättan factory, adding that the purchased parts would likely travel to China for use by Volvo owner Geely.

While we're putting this story in the rumormill for now, purchasing expensive tooling at a fire-sale discount sounds like a potentially brilliant idea for Geely and Volvo. Volvo could soon begin building vehicles in China to expand its presence in the emerging market, and it always helps to get such a project off the ground with some high-quality parts that obviously haven't been used much lately.Volvo bidding for (parts of) Saab originally appeared on Autoblog on Fri, 24 Feb 2012 10:59:00 EST. Please see our terms for use of feeds.
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