Volvo Denies Rumors Of Buying Saab

William Maley - Editor/Reporter - CheersandGears.com

April 22, 2011

Volvo is denying a report from Dutch newspaper, De Telegraaf about buying Saab. De Telegraff said in an article that the Swedish Goverment was in talks with Chinese owned Volvo about possibly putting in a bid to buy Saab. The move would give the Swedish government greater assurance that a loan from the European Investment Bank would be granted for Saab and a guarantee from Sweden that the loan would be paid back. Volvo Cars spokesman Per-Ake Froberg said about the report,

"No such talks have been going on and no such talks are scheduled."

Saab has been hurting for money since being bought by Spyker last year. Production was stopped a few weeks ago due to suppliers not being paid. Since then, the Swedish government has approved a financing deal for the automaker which needs to be approved by European Investment Bank.

Source: Automotive News (Subscription Required)

Sweden might actually find it a good idea to have Saab and Volvo co-owned and then try to differentiate their products, and then seek new markets to expand to.

Rich Whitey is still fairly stuck on German cars though. I did park next to a new S60 this evening. Sharp car, but the Swedes just can't overcome the whole German thing unless they really hunker down and get some of their own brand equity back.

This seems to be the last chance for the Swedish auto industry. I do not see how they can be appealing beyond Nordophiles.

Volvos have a little more appeal than the average Saab, buy neither company is looking good in the States.

A Chinese owned Swedish company that was just divested by Ford buys a Danish (and now Russian) owned Swedish company just divested by GM. yeah, this is a good idea... nothing could possibly go wrong here.