13.01.2009
Volvo and Saab still on the market
Ford and General Motors are both saying they are pushing ahead with plans to sell their Swedish car brands. Ford Chief Executive Alan Mulally said at the Detroit Motor Show that he has been in talks with several potential bidders for Volvo while his GM counterpart Rick Wagoner said that GM is also still seeking a buyer for Saab.
GM Europe Chief Carl-Peter Forster said there had been an approach for Saab from "an investor" two or three months ago although this is currently on the back-burner. He dismissed speculation that a sale could be made before the end of March when GM has to present a restructuring plan to the US government that shows the company has a viable business model.
He added that it would not be possible to sell a business like Saab within two months. Vice Chairman Bob Lutz, GM's product development guru said the company had been hoping for an improvement in Saab's financial performance for the nearly two decades it has owned the brand. He told reporters that the Swedish company had been on GM "life support" with an unending string of losses.
Ford's Mulally said there had been interest in Volvo but also did not say who from. Volvo chief Stephen Odell, who took over the job last autumn, did not comment on whether the company would be sold or not, only that he plans to make it profitable. Volvo is the last survivor of Ford's Premier Automotive Group which once included the British Aston Martin, Jaguar and Land Rover brands.
Aston was sold nearly two years ago to Middle East investors while Jaguar and Land Rover was acquired by Indian manufacturer Tata Motors last year. Ford has also sold about two-thirds of its stake in Japanese automaker Mazda last November.
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