China's Geely, Owner of Volvo, Denies Interest in Buying Saab ~ Greatest Vehicles

Friday, 7 October 2011

China's Geely, Owner of Volvo, Denies Interest in Buying Saab

Saab is in a crisis indeed. One day it is rescued, and the next it is on the brink of destruction. And this has been happening over and over again, like an automotive version of The Groundhog Day.

Yesterday we reported that Saab has not yet received the funds promised by Pang Da and Youngman as a bridge loan to keep the Swedish carmaker in business until the deal is approved by Chinese authorities.
Today, Swedish newspaper Dagens Nyheterpublished an article claiming that another Chinese automaker, Geely Automobile, which bought Volvo from Ford in 2010, is interested in acquiring Saab as well.
The newspaper based its claims on an unnamed source allegedly familiar with the issue who claims that Geely is talking to the administrator appointed by the Swedish court. The source added that “Geely is interested in the whole thing in terms of production and development”.
However, Geely executive director Lawrence Ang denied that his company has any interest: “According to my understanding, we have no such plan”, he said, adding that Geely is alreadybusy with Volvo.

Analysts like IHS Automotive’s Ian Fletcher said that such a movement would not make sense since Geely doesn't need extra capacity and the two Swedish companies are effectively competitors: “Volvo would welcome Saab’s exit. They have been fighting for the same space for years”.
Saab spokesman Eric Geers didn’t make us any wiser: “Several companies are showing interest in Saab right now”, he said, neither confirming nor denying the newspaper report. He added though that his company “has of course a binding agreement with Pang Da and Youngman”.
Story References: Autonews


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