Saab Could Be Rescued By Indian Take Away
Industry News
Saab is going through a bit of a troubled patch at the moment, the company is owned by National Electric Vehicle Sweden (NEVS) a Chinese company seeking to turn around the company’s future. Only NEVS has recently lost the right to use the Saab name as it seeks creditor protection in the Swedish courts because of severe cash flows issues. Saab was sold by previous owners General Motors too the little known Chinese company back in 2012 in a bidding war between Indian automotive conglomerate, Mahindra & Mahindra. With Saab’s production currently halted the Indian company is back on the acquisition radar and is seeking to sweep up the apparent mess left over by NEVS with an outright takeover that could involve a joint deal with Peugeot/Citroen. Mahindra & Mahindra are interested in Saab because the brand still has residual value and reach in both the US and European markets. But relaunching Saab wouldn’t be easy after the uncertainty of stop start production of the last two years. PSA are leaders in diesel hybrid technology, the French company has previously supplied Mahindra & Mahindra with engines during the 1980’s and 1990’s. A joint acquisition would enable the Indian conglomerate to strengthen its global presence and potentially offset its weak performance in its home market.
Mahindra & Mahindra own Ssangyong after purchasing the 70% of shares in 2011 a deal which saved the Korean company from bankruptcy.
Ssangyong has a strong market presence in Russia and will launch a new compact SUV in 2015 called the X100. It will be the first vehicle to be launched by Ssanyong after it was acquired by Mahindra & Mahindra three years ago.
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