In best example of Asian fusion since PF Chang’s, Geely Automobile has denied a rumor that it was looking to purchase Saab, because it already has its hands full with another Swedish automaker: Volvo.
According to a Swedish newspaper, Geely’s parent company Zhejiang Geely Holding Group is interested in Saab, “in terms of production and development.” But Geely is denying such murmurs. According to Geely executives, the Chinese company is already busy enough with Volvo after buying it last August.
Saab is already working with other Chinese automakers as it awaits the final efforts of a deal with the companies Zhejiang Youngman and Pangda Automobile, which will net it an investment of $93 million. Both companies are anticipating a ruling from the Chinese government on October 14th, according to Saab. But the Swedish newspaper that suggested Geely’s interest also mentioned that Youngman might be pulling out of the deal, at least for the long term.
Over the years, the competition between the two Swedes has been intense, as both occupy the same niche: “Volvo and Saab have, effectively, been fighting for the same space for years. I think ultimately, Volvo would welcome Saab’s exit,” said industry analyst Ian Fletcher. With Saab still in its death throes, we imagine a takeover by Volvo akin to the death of Mufasa in The Lion King: in the cutthroat fight for Scandinavian automaking supremacy, “long live the king.”
Source: Automotive News (subscription required)