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Volvo placed a bid for parts of Saab

February 23, 2012 in News

According to SR/Ekot Volvo has placed a bid for parts of Saab. It seems like the revised bid includes more assets than the original one and is aimed at equipment and tools.

Volvo Cars will have made a bid for a large part of Saab’s bankruptcy estate, said sources of P4 West.
The bid must be extended and go beyond what it had previously been interested in.
- We have already told us that we are interested in parts of Saab. We are in close contact with the administrators, but I can not say anything about a bid. It is up to the administrators to tell about it, says Per-Ake Froberg, at Volvo’s press department.
According to P4 West’s sources, Volvo will buy all the equipment in the factory. Volvo Cars is not interested in having any production in the factory, according to a source familiar with those matters.
Instead, it is likely that the equipment will be moved to China, where Volvo and owner Geely is now building factories or equipment used in the factory in Torslanda, the source said.

Of course it may upset many here that it is Volvo who may want to ship the factory to China but please stay calm. First of all this is something that may only take effect if all parties who want to restart Saab should not get a deal done. The chance that this happens is fairly small as there are indications that some of those have a real desire to get hold of Saab as a whole. Additionally the receivers also want to find the best solution for Saab, the employees and the region. Second, it is a normal thing that any company that is in need of certain machinery shows interest in Saabs assets. This is pure business thinking, not emotional.

43 responses to Volvo placed a bid for parts of Saab

  1. Might only be rumours though!

    Praying, hoping and having my fingers crossed!

  2. Never having another Volvo. My early XC90 needed a new rear wheel bearing after 14,000 miles at 9 months old. It too over a week to fix, rubbish service from the dealer, I had to get cross before they would provide a car for me to use while waiting for parts. Volvo UK did offer me about £50 Volvo vouchers as good will, which I never used. The good news was in the early days of the XC90 you could pay a premium, so I did well with the second hand one which I sold in disgust at Volvo at 14,700 miles.

    The Volvo offer, as we see it is not a good move for the region and local business. If that is one of the factors, then they should fail, but they are Swedish (in a Chinese sort of way), so that may help them.

    New 9 – 5 bought in 2011 is excellent, should anyone care to know. Could turn out to be a rare care by the standards of modern day production numbers! No problem with SAAB dealer (yet). I will wait until the dust settles before worrying about free services and the guarantee. Who knows, a new owner may honour them.

  3. Seems like a perfectly reasonable outcome if there are no viable bids for a SAAB restart. But I am crossing my fingers that the restart is the result, as I am sure we all are.

    • We continue to inch closer to the time when a restart won’t be viable. The deal has to be done in days now—-a week or two tops. Beyond that and they need not bother.

  4. Their bid should be turned down immediately.
    Volvo is being a Swedish vulture & just looking for bits & pieces.
    Any bid for bits & pieces should be turned down b/c their are better offers from bidders to buy all of Saab to build new Saabs in Trollhattan.
    Saab MUST stay together so it can come out of its coma(bankruptcy) for a future of new cars soon by a company that will support it & bring it into profitability w/Swedish pride & craftsmanship! :D

    • Stay cool Eric, there are many parties who are interested in bits and pieces. And they make their bids. The admins look at that and put them in the worst case box. In the end, with those bidders who want to restart Saab I don’t see them needing that box but they have to keep those bids, too.

      • Maybe, but they don’t really need them.
        As reported here many times, the Admins goal is to sell Saab as a whole to the best party that Saab will have a secure future with & return to build cars primarily in Trollhattan & maybe elsewhere too.
        I believe such a bidder will get Saab & do right by them. I am hoping either BMW or Brightwell gets them.
        I would be fine if Koenigsegg was the Swedish interested party. :)

        Though we all know a Trollhattan-built Saab is best! ;)

  5. No way Geely. Dream on. No way will the Bankruptcy Administartors let that happen.

  6. Volvo can get stuffed …….

  7. If, and I stress the word, “IF”, BMW is bidding on Saab, this would kind of make sense.
    Volvo is gaining ground in the lux-euro segment and gaining marketshare (small compared to BMW, et al but gaining, nonetheless). This could be a chess match between Geely and BMW.
    BMW protects itself if it can develop a solid business model to acquire Saab and keep Volvo from strengthening their brand with Saab goodies. But I can’t see BMW doing this without a model that makes sense and right now, I don’t see that scenario.
    Again, I think the BMW bid to restore the Saab brand is quite far-fetched but if it were true, I could see this scenario playing out as the reason why.

    • I kinda see where your coming from but I have been speaking to friends of mine recently who are BMW owners and members of the BMW oners club and apparently BMW are looking to introduce a new Z2 to add to their other ‘Z’ models both past and present.
      They had wanted to introduce it as a FWD model but there was such an outcry that they are now looking at an AWD solution and need a chassis that will work with an AWD system as well as let them develop the FWD system. This could be why BMW are looking at Saab. The technologies Saab have with the new Pheonix platform and the work with the electronic axle etc is something that BMW might well want to get their hands on.

      We can only wait and see.

      Griffin Up! Cuore Sportivo!

      • Any BMW model that is AWD better be R-AWD, not F-AWD. Same thing for Rolls Royce.
        F-AWD would better be off for Mini & perhaps Saab, if BMW gets the brand. :)

      • I’d be surprised if BMW needed Saab’s technology. If what they wanted is AWD, they can get XWD directly from Haldex (they just cant call it XWD. Haldex calls it Generation 4). In most other departments, BMW driving dynamics are much better than Saab’s. (Hey, you’ve got to give credit where it’s due.) Other than wanting to patch a hole in their lineup between Mini and the 3 series, I don’t see why they would be interested. I would imagine technology transfer out of Saab in the case of Youngman and Mahindra. If BMW are successful, would imagine that they transfer technology in…by taking the Saab name and its design language and build it ground up on their own platforms. After all, that’s what they did to Mini…quite successfully.

  8. Reasonable or not, I would forever hate Volvo.

    • If Volvo’s bid for the equipment succeeds, all other options would have failed. In that case Volvo would be at the bottom of long list of people or companies to hate.

      It won’t come to that, IMHO. The administrator’s decision making tree probably runs in this order: BMW, Mahindra, Brightwell, Youngman, and other unknown bidders for the whole operation. All 5 or 6 of those scenarios would have to fail for Volvo’s bid to come into play.

      Cheer up, we’ll be fine.

  9. Well, once bitten twice shy. So, hopefully there will be a fair and square deal. No wonder that Saab fans are acting very emotional.

  10. I just wish the Administrators will put VOLVO’s bid at the end of the queue.

  11. No need to be emotional about this. As previously mentioned multiple times, the administrators will prefer bids from parties willing to restart production and create jobs in the original factory. This is what we all wish.
    However if all these bids fail, it’s perfectly reasonable that the machinery will be sold to someone, and then why not Volvo?

  12. Thanks Geely..but no thanks… NEXT!!!!!

  13. If Geely’s ownership of Volvo is any indication of how ANY Chinese company woud run Saab Id rather see Saab go under. Volvo has accomplished NOTHING since Geely bought them.

  14. I don’t see any reality in this coming true..

    YM, will bid higher to get these bits [even if they then export it], in preference to allowing Volvo/Geely getting their hands on the production line & exporting it to china.

  15. The point has to be made that the administrators want to sell Saab as a whole, and not bits of it.
    So stories like this one, are not really helpful.

  16. Really? Just because Saab is number 1, we all have to slander number 2?

    If this goes through, it won’t be bad because it’s Volvo, or even Geely, it will be bad because it isn’t Saab. If the equipment is bought, it really doesn’t matter if it’s Volvo, Hyundai, GM, or even a company like GE that doesn’t even build cars. It’ll just be sad because it means the end. Don’t rage against Geely for wanting manufacturing equipment.

  17. I Think Ovlov can put their bid in the trunk and forget it.

  18. I have absolutely no hard feelings for Volvo because of their bid…yet. There is probably nothing sinister about it and trying their luck with getting some state of the art tools at discount prices makes perfect sense to them. I am sure Saab would do the same if the roles were reversed. At this point I will asume they are playing fair.

    I will not wish them luck with that, though. Their bid will probably only stand a chance, should this selling affair drag for some more time yet and I do hope, they are not going to try to achieve that.

  19. Alright, I deleted a string of comments here. When commenting, please don’t insult each other or a group of people, what you perceive as a harmless joke may not be received that way and there is no place for that on Saabs United. Thanks. Remember we are here to talk about Saab.

  20. I think we all need to collectively take a breather here and remind ourselves of a few things:

    1) We are all loyal (to a fault perhaps) to SAAB and I’m right at the top of the “diehard” list. However, despite all our loyalty to SAAB, this report on Volvo is just a report and not an announcement from the Administrators that Volvo has successfully acquired anything. Until then, it does not affect anything other than the portfolio of OPTIONS available to the Administrators.

    2) I would like to think that my fellow SU members and all SAAB enthusiasts are able to be grown up people and remember that. Some of the things I’ve read in the comments of theis report are not what we should be standing for. We and our cars are a minority in this world and I know just in my small circle there are plenty of people that think I am crazy for being loyal to what they call “an ugly inverted bath tub looking car”. We are (collectively) fighting for survival and if we want SAAB to survive and to gain acceptance then we must show we are rising above already. (Jason, youre right and I am sorry you had to delete commenta. I’ll leave this point #2 part to end here)

    3) Finally, at the end of the day, this is a business scenario. “Business is Business” and nothing emotional matters in business; we should (I have) fired my own family members if it is in the best interest of the business. The state of SAAB, the finances, the bankruptcy, the bidding process and culminating in a purchase & sale of any kind or extent is business. In business you are paid to do what is best for your company/employer. Regardless of what level of business you’re at, it always has one thing in common: you are expected to manage your controllables. Obviously obtaining high-end, high-tech and high-quality items and doing so at a low cost presents great value and is a prime example of managing your controllable expenditures. If Volvo didn’t explore it’s options and pursue this area then the leadership of that business would be foolish and their roles as leaders should be called into question. They are doing their own due dillogence and making decisions for the good of their own business and we should not be so close minded to what and why this is the case or the course Volvo is looking at taking.

    Business is Business
    Personal is Personal

    They are meant to be kept separate and we need to remember that.

    I am not happy about the though of a world without SAAB nor am I interested in Volvo’s expansion at the expense of SAAB. But until I seen or hear of the finalized sale of pieces versus the whole then it’s not something to worry about.

  21. Slightly OT but I’m bored waiting ;)

    I’m already starting to see the ad campaign in my head when (not if) BMW buys Saab.
    One bimmer and one Mini on display, then a new beautiful 9-5 is unveiled with the text “Willkommen bei uns!”

    Confidence in Saab restored. As simple as that.

  22. There is a very interesting analysis fronm our SAAB friend Jonas Froberg:

    http://www.svd.se/naringsliv/spelet-bakom-volvos-nya-bilmarke-i-kina_6875161.svd

    It is discussing a “shot gun wedding” of Volvo and Geely with forming a new brand in China. It seems that the foreign brands are not that welcome in China anymore and therefore Volvo must support a new Chinese brand.

    At the end there is an interesting question about the possible Youngman acquisition and future for SAAB in that case.

  23. I am not too sure whether this fit, but the excerpted article below is with regards the notion that for a Saab to remain true to the ethos of Saab, it has to be produced in Sweden:
    The BMW Group has invested R2.2 billion between 2009 and 2012 in building the new BMW 3 Series at BMW plant Rosslyn [South Africa], where series production started earlier this week.

    “The BMW 3 Series is the most important volume-produced model by the BMW Group as well as the biggest-selling model in the entire premium segment.

    At the same time, every generation of the 3 Series sedan has been built in Rosslyn and since 1999 this plant has been responsible for production for important export markets such as the USA, Canada, Japan, Singapore and Australasia to name but a few,” said Frank-Peter Arndt, a member of BMW’s board responsible for production. “In 2009 when the economic crisis reached its peak, we decided to invest R2.2 billion to increase production capacity here in South Africa in order to produce the new BMW 3 Series Sedan. This was the clearest statement we could make at the time.”

    If Bavarian Motor Werke can produce specific variants of their model line-up in specific targeted countries, why would this necessarily be bad for a resurrected Saab? I am as yet to see the difference between the BMW 3-series produced in Germany and the one coming from Rosslyn, I tried to spot the differences, but none the wiser, neither the ethos of ‘Sheer Driving Pleasure.’

    • Saabs have to be developed in Sweden. All the reasons ‘why’ become apparent when the winter comes and Saabs gets exposed to near-Arctic conditions in places.

      I’m skeptical of moving production out of Sweden while R&D remains here. That feels odd somehow.

      However, does all Saabs have to be manufactured in Sweden? That has rarely ever been the case, so the answer seems to be ‘no’. (2010 was the first time the convertibles were produced in Trollhättan)

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