The Swedish government made it clear earlier this week that it has no intention to acquire a stake in struggling Detroit-owned automakers Saab and Volvo. The government also said that it is done providing emergency aid to the automakers, which are owned by General Motors and Ford Motor Company, respectively.
The government’s decision puts the two automakers’ futures in serious jeopardy. GM has already said that it is struggling to find a buyer for Saab, which would be sold without its essential engineering center, and Ford hasn’t seen much interest lately in Volvo.
“I made it clear to General Motors and Ford that under no circumstances will there be a way that the Swedish government, the Swedish state, will become an owner of either Volvo or Saab,” Joran Hagglund, state secretary of the Swedish Industry Ministry, told reporters at the North American International Auto Show in Detroit.
“They [GM and Ford] have to take the full responsibility for the actions that have to be taken to secure good futures for the brands.”
The government provided about $3.1 billion in loans to the automakers last month. Hagglund was in Detroit to discuss the automakers’ plans for the brands, as well as to firm up details about the government’s aid plans.
Both brands are officially up for sale and there has been some industry concern that potential buyers could come from markets not traditionally associated with the higher-end auto industry.
“We don’t have any political or ideological point of view of who will be the new owners,” Hagglund told the media. “We are certainly interested in whether the owners have a knowledge of the industrial sector, manufacturing, do they have a long-term commitment to these brands, questions like that.”
01/14, 12:50 PM
posted by:
A4
why do they need them to own them if theyre getting assistance anyway?
01/14, 1:03 PM
posted by:
yarddog82abn
I guess the Swedish government don’t need jobs that Saab & Volvo provide…
01/14, 2:01 PM
posted by:
acura_el2000
I’m telling you, IKEA needs to step in a buy Saab. I find it hard to believe that Volvo couldn’t run itself.
01/14, 2:19 PM
posted by:
Borat
Sad to see Swedish industries hitting the dust: first porn, now this…….
01/14, 3:07 PM
posted by:
howsmydriving
No need to worry. I know a girl who works at an Ikea customer service counter and she assures me that Ikea will be selling Volvo’s and Saabs in Ikea parking lots near where the shopping baskets are kept.
01/14, 3:10 PM
posted by:
johnnycanuck
IKEA would be a logical choice to revive the Swedish porn industry. Isn’t it already considered a big box chain?
01/14, 3:41 PM
posted by:
Gundy
HA.
Hey, that’s a great idea acura, to have IKEA buy Saab. The guy that owns IKEA had the biggest income of anyone in the world a couple of years ago, some un-GODLY amount over $100 million or some crazy thing. If anyone could get a loan to buy his hometown (country) Saab, anyone could. IKEA has to be cranking even now, where else can you get a Chinese couch for like $12.. Even people that got laid off can afford IKEA stuff. He could probably pay cash for Saab. Someone on our street has one of those little badge-engineered Saab / WRX wagons from a couple of years ago, the 9-2x Aero or something? Even though it’s literally a WRX with chrome, it’s a super sweet little car, especially in black.
01/14, 3:46 PM
posted by:
Gundy
Wow, that was a choppy little nightmare of a thing I just wrote, sorry about that..
01/14, 3:52 PM
posted by:
AnonymousCoward
I like the right wing government in Sweden. They are no nonsense, hardball players that don’t buy the BS from Ford and GM. They are demanding things in return, and I bet that will benefit Volvo and SAAB in the end more than just handing over the check without with no questions asked.
01/14, 3:54 PM
posted by:
miket
I agree that Volvo can stand on its own. Saab is another story through….
I find myself finally getting to the age where I can appreciate a Volvo or Saab for what they are…I am even considering a test drive of a couple models of each when I start shopping this summer….I would have never thought that would happen…
Maybe Ford should just spin it off completely and let Volvo sink or swim…..I bet they would swim fairly quickly. They already have a dealer network and a fairly loyal following. Volvo might have to axe a couple models that seem to overlap with themselves, but I believe that they could become profitable on their own fairly quickly.
I think GM killed Saab with their badge engineering–You can correct me if I’m wrong, but most Saab models seem to be just a tweaked GM product nowadays. Hell, they didn’t even try to hide it with that SUV a few years ago….It’ll be sad to see them go.
01/14, 3:56 PM
posted by:
Borat
Johnny, the president of Ikea of NA has name of Pernille Lopez or something like that. I think your idea has a merit and has been put in execution.