Volvo denies talks of buying Saab

2011 Volvo S60
2011 Volvo S60

A Dutch newspaper had reported that the Swedish government had been in that talks with the Chinese-owned Volvo Cars regarding a possible bid for Saab.

“No such talks have been going on and no such talks are scheduled,” said Volvo Cars spokesman Per-Ake Froberg.

The paper reported that the Swedish government was interested in Saab being taken over by Volvo, as it would offer greater assurance of the repayment of EIB loans granted to Saab and backed by the Swedish government.

Victor Muller, CEO of Spyker, the super-car maker that owns Saab, declined comment. He did say earlier this week however, that Saab was negotiating with a number of Chinese auto-makers about a possible tie-up scenario, after Saab was forced to temporarily halt production after a number of suppliers went unpaid.

– By: Stephen Calogera

Source: Reuters