Volvo owner Geely denies report that it wants to acquire Saab

Article by Christian A., on October 7, 2011

China-based Geely Automobile denied a media report from Sweden that it wants to acquire Saab. Geely’s parent company is Zhejiang Geely Holding Group Co., the owner of Volvo Cars since 2010. Saab is waiting for a long-term investment from China's Zhejiang Youngman Lotus Automobile and Pangda Automobile Trade Co. and is currently restructuring under creditor protection.

Youngman’s bridge loan of 70 million euros ($93 million) has yet to be received by Saab. Citing a source, Swedish paper Dagens Nyheter said last Thursday that Youngman may choose to withdraw from its agreement to put money into Saab in the longer term.

It also stated that Geely is “interested” when it comes to production and development, says Autonews.

The source also told the paper that Zhejiang Geely has approached Saab's court-appointed administrator about a deal. However, the report was denied by Geely Automobile executive director Lawrence Ang, who said that there’s no such plan.

He explained further that Geely has its plate full after acquiring Volvo. According to industry analyst Ian Fletcher at IHS Automotive, a tie-up between these two companies doesn’t make sense.

He explained that these two automakers compete with each other for the same segments and that Saab’s departure will be welcomed by Volvo.

He said that Geely doesn’t need the additional capacity in Sweden or Saab’s technology. Saab spokesman Eric Geers said that many companies are interested in Saab but the automaker has entered a binding agreement with Pangda and Youngman.

Topics: volvo, geely, saab

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries