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:

Pin It

Comments

Recommended

After making its debut at the Paris Motor Show last year as a concept car, the Trezor by Renault managed to bring home the 2016 Concept Car Design Of The...
by - March 23, 2017
We can already smell success for Opel, even if it had only recently inked its marriage with the PSA Group. The Insignia, being one of Opel’s best selling cars of...
by - March 23, 2017
The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 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