Volvo denies the fact that it plans to buy Saab

Article by Christian A., on April 22, 2011

Volvo denied that it plans to buy Saab or that there have been talks about this possibility, according to Volvo Cars spokesman Per-Ake Froberg. A report from Dutch newspaper De Telegraaf had quoted sources who said that the Swedish government had been in talks with Volvo Cars about its interest to bid for Saab.

The Swedish car maker, which is owned by China’s Geely, said that no talks about this are ongoing and also that there are no talks scheduled.

The newspaper report claims that the Swedish government wants Volvo to take over Saab because this means that there’s greater assurance for the repayment of a loan from the European Investment Bank given to Saab and which was guaranteed by Sweden.

After 2010 sales were unable to match forecasts, Saab has encountered a cash crunch in the first year that it had been under the ownership of Spyker. Saab was unable to pay suppliers and so production has been stopped.

Sweden has approved a financial deal that is subject to the EIB’s approval. In August 2010, Geely (the parent of Geely Automotive Holdings) took over Volvo car unit from Ford Motor Co. – the largest acquisition ever in China of a foreign carmaker.

Saab CEO Victor Muller revealed earlier this week that Volvo is in talks with several Chinese carmakers about a tie-up. Spyker has yet to comment on this report.

Topics: volvo, saab

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