US Automakers Consider Selling Saab, Volvo

STOCKHOLM, Sweden — The Swedish government confirmed Monday it is in talks with General Motors Corp. and Ford Motor Co. after a report that the U.S. automakers are seeking support for their struggling Swedish brands Saab and Volvo Cars.

"We are obviously in talks with Saab, Volvo, GM and Ford all the time, considering the difficult situation," government spokeswoman Lisa Warn said.

Warn declined to give details on the talks, but said the European Union's tough competition regulations restrain the options for the Swedish government should it wish to support the Swedish-based car industry.

Officials at GM-owned Saab and Ford-owned Volvo weren't immediately available for comments.

Ford, General Motors and Chrysler LLC have been lobbying the U.S. congress for financial assistance as the companies are being squeezed by falling sales amid the world economic crisis. However, the Swedes doubt U.S. lawmakers would be willing to support the companies' international operations.

"If GM gets money from the American government, then we're convinced that it will be earmarked for American interests," said Paul Akerlund, a union representative at Saab.

U.S. legislators have demanded plans from the carmakers before they will schedule votes on any new federal aid. The plans are expected Tuesday and will be scrutinized at a Senate hearing Wednesday and a House hearing on Friday.

Volvo Cars has already said it will cut some 6,000 jobs worldwide, of which more than half are in Sweden. Ford was seeking buyers for Volvo last year, but the Dearborn, Michigan-based automaker later said Volvo is no longer for sale.

Comments

[vjthedj]

Ford sold it's Land Rover, Jaguar divisions to India's Tata, and now it's selling Volvo. Volvo has always had a good name, of course the looks sucked at times. Saab just sucks overall.

[ChickenLips]

My Volvo is also 10 years old (175,000+ miles) and runs like a champ. I bet you can't say that about your Ford! Hasn't Ford paid any attention to how their Volvo subsidiary operates? If I were Volvo, I would want to be sold! Ford is going to bleed them dry.

[Tom95134]

I thought it very strange that GM included Saab and Saturn in the list of product lines they might dump. Saturn, while not being a very reliable car has gotten better and is a reasonably high mileage car. GM should get on this one and make it right. Saab is simply an all-around great car that performs, is very safe and has a long usable life. However, it is understandable that GM and Ford would like to dump Saab and Volvo. The cars last way too long for companies that depend on planned obsolescence as a key marketing requirement.

[mcamp52]

Good point. My Volvo is 12 years old, has 175,000 miles on it and still purrs like a kitten. The only thing that is wearning out is the incredibly comfortable seat. And as for Saturn... GM had every chance in the world tro do everything right. They started from scratch; built a new factory specifically for the Saturn line. And they blew it. They flat out blew it. Sorry, but no bailout for you. You just don't deserve it.

[planetjeffy]

I used to work for Saturn and GM blew it. They sabotaged it at Chevy's request, then started production at another plant, when they had plenty left in TN. Saturn was supposed to be GM's small car division, but all it got was a Hummer.

[darthdarcy]

Saab is one of the best cars in the world as far as concept design and road worthiness I sold them for a living and drove them at Limerock race track pushed them to their limit and just wish America had learned from this great company and their design engineers..

[KillTheMessenger]

They used to be. Then Ford got their hands on them, gutted the safety concept and painted some parts Daytona Yellow on their safety advertising models that they show on their sales floors. The real cars now crumple like origami but people still believe that they are good. Talk about a sales job well done. The engineering... not so much.

[mcamp52]

Volvo and Saab; good cars. GM and Ford; poison. And now the poison has had its effect on two great auto makers. What a shame. The survivors of the auto industry will be the Asian companies with no US or European owners. Why? Because they make cars that work and don't waste fuel? But more importantly, because they have no ties to the corrupt US auto industry that is in the pockets of the US oil industry.