Volvo owner Geely denies report that it wants to acquire Saab
By Andrew, 07 Oct, 2011. 0 Comments
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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.
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