Ford has announced it will ‘re-evaluate strategic options for Volvo Car Corporation, including the possible sale.’ GM is almost certainly doing the same with Saab. If you want to buy a money-losing Swedish car company, you’ve now got not one but two chances. Emailed your bid yet?
Thought not. Ford and GM won’t be able to raise quick cash by selling off Volvo and Saab.
No, the reason they both want rid is that they have never really been able to make consistent money out of them. Worse, they just distract management from healing the sickness at the hearts of the main companies back in Detroit.
Trouble is, they won’t be able to unshackle themselves any time soon. These things take months. GM has already had Hummer on the block for most of 2008 with no buyer. It took months and months for Ford to sell off Jaguar Land Rover.
First, a buyer has to be found. And at the moment the main aim of every car company, including the ones that look healthy, is to spend as little money as possible. Buying Volvo or Saab involves spending money so which car company would go for it?
Second, even if a buyer does turn up, the process of due diligence is painfully slow.
Volvo will be a part of Ford for at least a year, I’ll predict.
And as for Saab, I’d say it’s more likely that GM will close it down than successfully sell it. Because if GM is to secure Federal aid, it will have to show it’s ready to swing the axe big-time. Why should Congress mind if it’s Swedes who suffer?
I’m from Sweden, and to be honest, I have split feelings. Lots of people over here will be thrown into unemployment, but at least the Saab factory produces other GM cars as well. I’m not sure that the specific factory will be closed down.
And, if I’m allowed to be completely cynical and ignore the poor people who loses their jobs, it would be a blessing if they close Volvo or Saab down. They are, possibly together with BMW and Porsche, the dullest designed cars ever made. Saabs have looked more or less exactly the same for twenty years now. As a Swede, I often find myself apologising for making the least exciting cars in Europe. Apart from the workers at the plants, I wouldn’t miss Volvo or Saab a bit. Come on GM, give us your worst.
I guess Saab is actually selling more than GM (except Opel). Saab didn’t manage to lose billions. Same for Volvo. In fact, americans are bouncing their fast-falling, heavy buttocks on Swedes.
How on earth can you put Volvo, Saab and BMW in box that says dullest designed cars ever!
You may not get their form language but that does not make i dull. BMW has been very innovative with fx. the flame surface thing and both Volvo and SAAB have done lots – it’s just they don’t do design that is loud. Something which is a good thing because loud tends to get old very quickly.
If you want to talk dull look at Toyota, Opel (and most US GM stuff) and VW to some extent.
Seeing SAAB and VOLVO shut down would be a big shame. I’d much rather have GM go away and that would also be better for the world.
I’m currently waiting for my XC60 D5 to be delivered in early January. Personally I think that, just as with Jag, LR and AM, Ford will end up regretting the sale in 5-10 years time. Just as well, because all these brands are doing less bad than their American parent and will do even better once this (American-caused) financial crisis is over. By that time we’ll have seen a real change in the car market, after the dinosaurs are gone and people will have opened up their minds to what a 21st century car should provide: quality, reliability and economy.
I, for one, wouldn’t mind seeing Chrysler and GM goind down in flames, and Ford being forced to sell Ford of Europe, Volvo and Mazda. Maybe then these 3 newly-freed brands could form an alliance similar to PSA.
Some very interesting posts: Ford and GM are indeed in trouble due to there American Operations.
The big difference for me is that Ford at least produce some decent cars in Europe unlike GM – Sorry, been there done that – If a Vectra is the best GM can do in Europe then they really won’t survive. As for Saabs I’ve had more than a few and loved them – right upto a 93 Aero which fell apart just like any other GM product: A great shame. I for one hope Saab are saved but demerged from GM, perhaps they will then start to make some decent cars again.
Saab could be restored to a good car company with a lot of careful investment, but Volvo has been profitable for years. Anyone who buys them will do well of the back. I’m expecting Tata or someone to buy it.
The only firm that I think would be in the SLIGHTEST bit interested in spending money building up its portfolio is Porsche, because they seem to be weathering the storm better than most just now…
If buyers can be found for Volvo and Saab, though, I think it’d work out better for the Swedes.
Ford is guilty of catastrophic mismanagement of the marques in the Premier Automotive Group, and I don’t think they ever really knew what to do with Jaguar or Volvo. As Louie said, I think they’re going to regret selling Jaguar in a few years time…if Volvo gets a new owner that knows what they want to do with the brand, I think they could really flourish.
And GM is just a walking disaster zone. I think Saab make desirable cars, but they’re too flawed to be a real competitor against the Germans just now…their recent concepts look attractive, but I only think they’re a viable option if someone splashes the money out on Saab the begin with…
It’s possible that car companies wouldn’t risk spending money on Volvo or Saab. But there are other companies, or just some rich guys, from Europe especially, who wouldn’t mind spending something on Volvo or Saab, if the prize is ok.
Now, since this topic is becoming a “big 3 going down, pt. 3″, my opinion is this: GM maybe doesn’t make top quality cars, but even so, there is a market for such cars. There are people who can’t spend much on a car, but for some reason have to have one, for their job lets say. So, they are either going to buy second hand, suspicious car or a brand new Opel. And since all they need is wheels + seats + roof, that’s more than enough for them. They are happy, GM is happy, every1 is happy.
And finaly, big 3 won’t go down. Killing these companies would cost every1 more than giving them some extra cash, to cope with crisis. Factory workers, suppliers, dealers, child companies, sport events sponsored by them, bla bla bla, would suffer if they go down.
I guess GM should sell child companies, Ford do the same and make Ford Europe independant from Detriot. As for Chrysler, I dunno. I have 10 years old Voyager and it rides well, even off-road and that 300C looks cool, so I’d like seeing them some more time too.
all of them can close down…no pt trying so hard…it just dun work..they must well invest in toyota or bmw and might just bring them down as well..the mgmt are just utterly hopeless….to bail them unless they remove all their mgmt folks totally and bring in new blood…else, bailing them will be a total disaster !!!
As I posted on the Vauxhall issue, I think GM is going to get down. US goverment will bail-out their pensioners and after a hard reconstruction they will go on, starting new. I don´t think they will sell Opel, firstly because they don´t sell the only (nearly) money-making company and secondly they profit of all the development made in Germany. If the US market is going after smaller, more fuel efficent cars, they may adopt these cars (Insignia, Zafira…) to the US. They already have imported Opels and sold them under the Satur brand.
Ford will not receive money from Washington because they don´t need it. They even made money as they announced, in the first quarter of 2008. and they made big provision, so it´s not so bad for them at all.
Chrysler in my humble opinion is a hopeless case. even after Mercedes pumping billions of dollars into the company, the haven´t been profitable. they don´t have the cash to make new developments. with their current LE-platform they have a good basis, but left to their own devices … I don´t know.
At least they have now a independent rear suspension, rear wheel driven plattform, and not the crap they developed of their own. Does anybody know if they have to pay for this to Mercedes?
But back on Volvo and Saab, I hope they find a swedish investor, and start new. Best thing would be together, and build up Volvo as the more conservative and Saab as the “sporty” brand.
I currently drive a Saab 9-3 and I absolutely love it. The only thing that I dislike about the car is that when I open the door and look down there is a GM sticker. The unibody platform could have designed much better by an independent, or at least non-GM controlled, Saab. I, for one, would love to see Saab purchased by Tata, what they’ve done with Jag has been astounding and moved the brand forward in ways that Ford never did, and LR has some interesting things on tap. Saab being closed down, on the other hand, would be horrible; think of all the wasted turbo technology…
@ Yankeedoodle
Could I just point out, although I too hate Ford, that their last Jag was the XF, and they are also responsible for the new XK? So far there has been little actually new material from Tata.
All of the Land Rovers were Ford-era, too.
@ Yankeedoodle
Could I just point out, although I too hate Ford, that their last Jag was the XF, and they are also responsible for the new XK? So far there has been little actually new material from Tata.
All of the Land Rovers are Ford-era, too.
If ford & GM are going to sell off these companies, then they are going to have to bring out some mad new concepts or models. That will attract more people to Either company. BUT. If they sell the company to… lets say a private company, then it will have to axe jobs, Aston Martin has axed 600 jobs this month, and that was taken into private hands. Its all not lookin good. Even for me. And i’m 13!
I’ve heard, that majority of Swedes want the Government of Sweden to buy Volvo and/or Saab. But as far as I know, it’s too expensive.
I would like Saab to survive, there is still something left in the brand. But the product has been too poor for too long now, so I really can’t see it happening. The convertible is its only standout car, and that’s been overtaken by many others now. And as a business it has been a disaster for over a decade. Volvo has done much better, and would be doing fine if the SUV market had not fallen off a cliff – the XC90 was where all the profits came from. Not the most exciting cars, it’s true, but I would think they have plenty of loyal customers and decent goodwill with their dealers. But I agree with the comments above that in this climate it will not be an easy sell – although perhaps easier than Hummer, which must be the worst timed divestment ever
Saab and Volvo are themselves too small for any kind of innovation right now. Neither has done anything in hybrids or hydrogen for example, relying completely on their big brothers in arms. So if they’re not backed by a big brand like GM or Ford, they might very well close down. Especially Saab already uses a lot of Opel stuff and even did a SUV courtesy of Subaru. If they lose that source of synergy, they will surely crash. Tata (or China) can’t offer that kind of support.
To the man who said Swedes make incredible dull cars, I present the Koenigseggrgggfgdgd CCX. Although BMW may have some dull points, the new 3 and one series, they’re still renowned for their engineering. Whereas SAAB’s are made by pilots, hopefully sober ones, and Volvos by architects!
I believe that Saab and Volvo is the best cars that Ford and GM is producing today. I don’t think there is any car that is produced in US today that is worth buying except the Swedish brands. But it’s not a question about saving the best cars, it’s just about saving american jobs, unfortunately.
Its a shame that due to mad management in the USA, related to poor products that GM and ford produce in the USA, we in Europe have to endure the effects of this crises!
Selling Volvo or Saab, is totaly wrong from a financial side, because you dont sell what is the only “brand value” you have, its a bit selling the chicken of the gold eggs, because you dont have money one day. This leaves GM with what? opel? hummer? sorry, maybe they deserve to close, they have nothing that i want to buy.
Maybe selling Volvo and Saab is the best that could happen to them, it will hard, but for people who think little brands cannot survive, just one word, porsche…
This may come as a somewhat left field suggestion, but I could possibly see Toyota (maybe under the FHI/Subaru guise) making a bid for Saab…
Saab have already worked with Subaru, when both were under GM, and both are the smaller more independent type of manufacturer. Saab could do with a bit more freedom to do what they want, and with input from Toyota and Subaru on parts and reliability, it could be interesting what they would come up with.
Other companies? I don’t see VAG/Porsche wanting either of them – both are too similar to companies already in the group. Likewise BMW – I don’t see it. Renault-Nissan have already said they are not interested. Honda don’t really appear to be interested in acquiring other companies. PSA… hmm, possibly, but I don’t see it.
I could, however, see Volvo and Mazda joining forces. The ranges would complement each other nicely. The only other option I can think of would be Hyundai-Kia, who might look at it as a way of gaining further experience and more European manufacturing bases.
A shame that it’s come to this, but GM and Ford are having more success with their European branches than the American ones…
in fact, Volvo doesn’t loss millions, and it was the only profitable brand among the former Ford’s Premier Automotive Group.
however there’s an arguable lack of personality among their cars, once the C30/S40/V50 are just upscale Focus and the V70/S80 are boring Mondeos.
have you checked the soon-to-be-replaced S60, the last car developed with no Ford engineering? it still looks great, and it seems to be a modern classic. it would be great if its successor was Ford-free…
i hope this is not the end .
The Focus and Mondeo are better cars their sisters from Volvo… The V70 for instance is just a Mondeo Estate, wich they have ruined the great handling on, to suit some 95-year old men with a troublesome spine.
Swedish cars don’t have a chance.
How can you place Volvo or Saab in the same league with BMW?!
The Swedish thought they could live alone in their country alone with their own cars.
They had their chance for greatness but they were not clever enough.
They are the only ones buying them.
If you want to be an international company you must think internationally.
I am sorry but how many Volvos and Saabs do you see in this country?
It’s odd that volvos aren’t better rated in this country, they offer some proper status free motoring. Besides, the ford parts bin isn’t a bad place to rummage around in these days. It’s Saab I’m impressed with though, their range of cars has a better perceived quality than the GM motors they’re related to. Maybe the answer is to follow the other great Swede business model, flat pack cars. It’s working for Caterham et al…
Volvo are great cars! Better than any Ford, Chrysler, etc. Well made and great looking, even after years! Not a car for a fashion addict, but it’s a brand with a mind of his own, everybody knows the ‘volvo’ brand, it’s a big nasty dinosaur!
Yes its wrong thread! but what the gnnnff?
Cant find it so justhave to say something and Proberbly get stalked by half europe and in front V.A.G concerns “GottaShutHimUp” – squad.
Just saw the golf punkvideo..or lets say this 1st: I am an old Vagfan and not just a “hater”.
When watch the vid first thing (sorry god youre not a thing,you got a name)popped up in my mind was God of Odd himself, Mr. Hans Dalhlberg….
You all know what i mean right?
VAG’s ignorance of the by sheer intrest and feeling / sense of thinking how parts react in all of the endless possibilyties to compensate things changed wanted but still keep things alraedy achived in place.
Plus all other knowlegde unvalueble for carconstruction ….A dynamic Pc that over all static numbers,can choose the odd lil change cause it FEELS right etc etc..
Should probasrbly had that video with a driveable (maybe even hard to intensly do an “overweighted Elvisbutt”) car,
But ofcourse its prestigedraining to listen to
the humbleness personified that went home and
with ofcourse some clawmarks on the wall however
already made a car fully potent to do anything
(Ok,many still sure havent picked their chins up yet trying to swallow words like fool,stuuuupid,imposssibl e…)
First to get that silly almost unesscary black hole power that make me smile-torque!??!!
Second: Let him talk n try to against all…ALL+ it should be, natural laws get it to the ground.
truly words that day: was ist los was ist los????????
Third: It never gonna be possible make it keep toghether ……
the rest is history.
thanks Hasse youre so hilarious insane that I lose my podiumplace (not for i build cars) but as people say im probly the craziest citizen.
And the laidback,totally humble way you got pimped by an accent from Dalarna wich like Piteåaccent make me fall in love as soon a dalagirl open her mounth. *:j
*sending a tearful thought to Sanna from Norrvik* <3
I like both SAAB and volvos because they are different.. they are not so dull/boring as cars from japan maybe except subaru (but still this car doesn’t get ride comfort and the quality/design of interior is awful) ok of course you don’t care about that if you buy impreza wrx sti.. but it’s very different player than SAAB and volvo.. think about french cars.. wouldn’t you be afraid to go for a holliday with one of those? with all those strange technical solutions they have.. design is other thing in french cars.. sometimes it seems they want to make just something different from other cars but don’t think about the people who will drive them.. ok german cars.. they are not boring some of them even look good! technicaly they are ok too.. but when you sit in a german car.. you can feel something is missing.. it’s something not for human beings.. I think it should be forbiden to drive a children in one of those.. they can turn in to a monsters after some time:) and it’s very different about swedish cars.. because they are made for humans and for families.. maybe in some points they are not the best.. but in every or most points they are good or very good and they are balanced.. that’s what’s is missing in a lot of modern cars.. good luck SAAB and volvo!
SAAB have always been the choice for individuals that do not follow the German trend, and frequently once you own one you are hooked. The 9-3 Sports Hatch is a very good looking car as well as being a pleaseure to drive. So I agree with other comments here and wish especially SAAB and of course Volvo good luck in the future. I have voted with my feet and bought a 9-3 sports hatch recenntly.