China's Swedish invasion
Disparate approaches could see both major Swedish car brands under Chinese influenceTwo Chinese companies are in the bidding for a share of Saab and Volvo. Respected motor industry publication, Automotive News Europe, has reported that Geely and Beijing Automotive are seeking to purchase a share of Volvo and Saab, respectively.
General Motors has been wanting to shed its Saab ownership for some time. For a shorter period, Ford -- having already dispensed with Jaguar, Land Rover and Aston Martin -- has been in a similar situation with Volvo.
Now, both Swedish car brands could owe their future existence to China: Saab to an agreement by the flourishing Beijing Automotive Industry Holdings to underwrite a bid from low-volume Swedish sports car-maker Koenigsegg, aimed at buying the country's second-largest car company; and Volvo to Chinese car-maker Geely Automotive's interest in taking full ownership from Ford Motor Company.
The Koenigsegg-Saab scenario started looking hopeful early in August when GM Europe agreed to takeover terms, although the question of how the Koenigsegg-led group would finance the 100 per cent purchase of GM shares in Saab was still not entirely resolved.
Now, with Beijing Automotive Industry Holdings adding considerable muscle to the takeover as it prepares to jump on board as a minority shareholder, the sails appear to have been set for a revitalised Saab.
As a Swedish car-maker with Swedish national pride in mind, critical influence on the shape of a new-look Saab should come from Koenigsegg.
"Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it 'sustainable' by making it profitable. We will revive Saab's Swedish heritage of ecological sensitivity, safety, design innovation and 'fun to drive' experience" Koenigsegg CEO Christian von Koenigsegg said recently.
The takeover bid is reportedly ready to go without need of the state financial assistance suggested in earlier reports.
The long-term ramifications are significant, with Saab making a first-time entry into the massive Chinese market, as well as the possibilities of establishing assembly operations in the world's most populous country.
The benefits for Beijing Automotive Industry Holdings in having a financial interest in an established European brand are less clear, and will stem from how successfully the Koenigsegg-led group restores Saab to its former glory.
Meanwhile, the small Chinese car-maker Geely Automotive has expressed interest in taking over Ford Motor Company's Volvo Car Corp.
This follows the departure of former Ford umbrella brands Jaguar and Land Rover to Indian car-maker Tata, and Aston Martin to a group headed by British motorsport and engineering group Prodrive.
It appears that Geely's interest in Volvo, for the moment, is just that.
Ford, although it has made it clear Volvo is up for grabs, has so far made little noise about a takeover other than saying it is "in negotiation" with an undisclosed buyer. A decision is expected to be made within a month.
Geely Automotive at present resides on the lower half of the Chinese car-maker ladder, but reportedly has aspirations for a more upmarket future -- including a presence on major markets outside China.
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