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.
12/03, 10:30 AM
posted by:
Borat
Why would any normal government purchase non-performing business?
12/03, 10:38 AM
posted by:
howsmydriving
By acquiring Saab, Fiat would gain access to IKEA’s vast distribution system.
12/03, 10:44 AM
posted by:
Borat
Yep, I remember days when you could (and I did) buy roof rack for either Saab or Volvo at IKEA for much less then from the dealer.I still have Volvo rack in my garage after Volvo long gone. I assume in Europe you can buy rack for FIAT from IKEA as well (never stopped in IKEA in Europe).
12/03, 10:54 AM
posted by:
johnnycanuck
howsmydriving, that’s brilliant. Think of the endless hours of fun you could have assembling an entire car with nothing more than a screwdriver and an Allen key. You know, kind of like how they make Chrysler products.
12/03, 2:16 PM
posted by:
Lariat Luxury Locomotive Liner No.3
If both brands are not sold soon, they will both suffer significant collateral damage (damage is alway being inflicted on these brands as every day passes), damage that might prove irreversible.
12/03, 2:28 PM
posted by:
yarddog82abn
Come one pass this on to the Swedish government, what’s the old saying, be careful of what you ask for, you just might get it….
12/03, 2:37 PM
posted by:
Borat
It is illegal in Europe for government to invest into publicly traded companies. This would equate to protectionism. That is why Sweden is staying away from this debacle. VW is being drugged through European courts because of Lower Saxony control over company and its shares. As a matter of fact it would be wise for congress to review existing European laws, because the penalties for protectionism are stiff. We may save few jobs for a year or two in Michigan and Detroit and loose the largest and richest market in the world for other goods.
12/03, 2:44 PM
posted by:
Lariat Luxury Locomotive Liner No.3
@Borat, do I sense Bolbo, and Baab motors in the works? Maybe even Bpel?
12/03, 4:50 PM
posted by:
Borat
@Lariat Luxury Locomotive Liner No.3, but do you see Bpenis?