With Detroit’s two Swedish units, Saab and Volvo , essentially on the selling block pending further review by their respective owners, Sweden’s domestic auto industry is on the verge of a full-out crisis. The center-right local government says it is willing to support the two faltering brands, but isn’t willing to take ownership of either of them.
“I don’t see it as the government’s task to own automakers,” Industry Minister Maud Olofsson told reporters in Stockholm earlier today. “I think the taxpayers have to understand that it is a risky project to invest their money and buy either Volvo or Saab at a time when there are such great losses.”
On Monday, Ford put said that it is “evaluating options” for Volvo, which it has owned since 1999. Yesterday, General Motors said that it is conducting an “expedited and strategic review” of Saab , a brand it has fully owned since 2000.
Essentially, the two Swedish brands noted for their comfort and safety went up for sale earlier this week.
GM hasn’t said what it plans to do with its larger German subsidiary, Opel. According to Olofsson, Sweden has been in contact with Germany’s government regarding what to do about the brand. Opel and Saab have shared research and development.
Suitors for Saab and Volvo haven’t been named, though Saab officials say that there is some interest in the brand.
“There are many interested parties,” Saab Automobiles Chief Executive Jan Ake Jonsson told Swedish radio, though he didn’t give details. Rumors point to Italy’s Fiat as the most likely to show interest in purchasing Saab, though the Swedish government is interested in returning the brand to a local buyer.
Ford will apparently consider spinning Volvo off into a separate brand and company if buyers don’t come forward quickly. Volvo Group, the truck manufacturer that once owned the car-building unit, has said it is not interested in re-acquiring the brand.
