Volvo Possibly Bidding to Buy Saab--Sort Of

[Shazam]

According to the original article here, CORRECTED - Sweden asks Volvo if interested in Saab bid -paper | Reuters , Volvo was entering talks to buy Saab. According to the updated/corrected article, Saab is looking to "tie-up" with some Chinese car makers (specifically Geely, through Volvo). The article also states that Victor Muller has stated that Saab is talking to Chinese car companies for a possible connection/investment of some sort, and the companies he is looking towards are "niche players and big boys". Reason are cited as being the sales shortage in 2010 which resulted in Saab being strapped for cash.

CORRECTED - Sweden asks Volvo if interested in Saab bid -paper | Reuters

According to other articles (UPDATE 3-Volvo Cars denies report of possible Saab bid | Reuters), Volvo has denied the bids to buy Saab and that the original Dutch paper that made such claims, is inaccurate. Someone just trying to stir up some news? Hopefully.

[tunnanxwd]

I would comment but some have hinted that I am about to be banned on the other forum.

I would not want to say anything that would be "bad for Saab" or be "distractive" of the forum.

Having Saabs and a Volvo puts me in inherent bias.

Geely? I never thought, but then the list that I started to run the other day, I had to cut short; China had so many car makers they could never be accused of a monopoly violation.

[SaabWorld]

Filed under: Europe, Saab, Volvo, Earnings/Financials



It looks like Volvo and Saab won't be teaming up to create one Swedish carmaker to rule them all. According to Reuters, Volvo has made it clear that the company has had no talks with Saab about buying the besieged automaker and that none are scheduled to take place. The Swedish newspaper De Telegraf had previously reported that the Swedish government was urging Volvo into talks with Saab about a potential takeover. The move would mean that a government loan previously granted to Saab by the European Investment Bank would have a greater chance of being repaid.

Saab has hit (further) rough waters in recent months with multiple supplier hiccups resulting in production stoppages including instances of the automaker being unable to pay for parts. In addition, sales fell well short of 2010 forecasts, resulting in a further cash crunch. The Swedish automaker has since performed a few economic stunts to get production rolling again, including selling the company's properties and re-leasing them at a lower cost.

In related matters, Automotive News reports that Saab CEO Victor Muller is looking to broker a deal with a Chinese automaker to help finance the company, although it is understood that Beijing Automotive Industry Holding Co. is not one of those parties. BAIC, you may recall, purchased old Saab assets (the previous generation 9-3 model, among other things) back in 2009 for $200 million, and it also expressed interest in buying Saab from General Motors before Muller's Spyker stepped in and completed the purchase.

[Sources: Reuters, Automotive News]Reports: Volvo denies talk of Saab takeover,
Muller looking for partner in China originally appeared on Autoblog on Fri, 22 Apr 2011 13:59:00 EST. Please see our terms for use of feeds.



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[nordwulf]

De Dutch newspaper De Telegraaf is similar to Dagens Industri where there is a lot of 'sensational' reporting. A reporter probably overheard someone using Saab, Volvo and China in a few sentences and made assumptions. De Telegraaf should not be considered a reliable source for anything.

De Telegraaf had cited unnamed sources close to Volvo

Perhaps they talked to the janitor?

[Shazam]

Sounds like it. I read one article saying Volvo was talking about buying Saab, then wrote a little blurb and then realized I jumped the gun. So I kept editing the blurb to try to reflect the true happenings.

[tunnanxwd]

Europe has similar laws don't they? I forgot what the foundation of the prohibition of the monopoly was .. interlocking corporate directorate .. ?? I didn't believe the Volvo thing a bit but they do have VM shopping China and with over 30 different auto companies that is certainly possible along with Mumbai. Ten years ago they would have rolled the med cart in if you said Jag or Rover were going to Tata?

Of course Volvo is owned by China now but I keep thinking Ford. Really, you need a score card now.

[tunnanxwd]

So BAIC is out and Geely not probable at all with Volvo/Geely but that leaves 36 to go with a point spread of ?? With this rain the ball will be hard to handle so put my pool money on ...