Volvo Cars makes bid for bankrupt Saab: report

Volvo Cars makes bid for bankrupt Saab: report
Swedish automaker Volvo Cars has placed a bid for large parts of its bankrupt counterpart Saab Automobile.

Volvo has previously expressed its interest in acquiring some of Saab’s assets and has now placed a bid, Svergies Radio (SR) reported.

However, Volvo officials were reluctant to shed any light on the bid.

“It’s up to the bankruptcy administrators to comment on the bidding,” Volvo spokesperson Per-Åke Fröberg told SR.

He confirmed that Volvo remains interested in some of Saab’s manufacturing and testing equipment which could be used in Volvo’s own operations rather than for restarting production at the Saab factory in Trollhättan in western Sweden.

Citing unnamed sources, SR reported that Volvo wants to buy all the existing equipment in Saab’s factory.

The machines and other equipment would then likely be moved to Volvo’s plant in Torslanda in western Swedne or to China for use in a production facility to be built by Volvo and current owner Geely.

Geely bought Volvo from US auto giant Ford in 2010 for $1.5 billion, less than a quarter of what Ford paid for the company in 1999.

On Wednesday, Geely also announced it will begin assembling cars in Egypt this year with a local partner, marking its latest push overseas as domestic demand hits the brakes.

Member comments

Become a Member to leave a comment.Or login here.