Volvo Cars makes bid for Saab assets image

After we reported yesterday that BMW is interested in buying Saab, now, the Swedish car maker Volvo Car Corp., owned by Chinese Zhejiang Geely Holdings Group Co., has placed a bid for bankrupt Saab.

Gothenburg-based Volvo has previously said it is interested in buying some of Saab Automobile’s machinery and test equipment.

In addition, a spokesman for Volvo Sweden has also confirmed that the company has already recruited 40 ex-Saab employees in the wake of its bankruptcy, adding that he expected another 100 ex-Saab workers to join shortly.

However, Volvo officials were reluctant to shed any light on the bid. A spokesman at Volvo refused to pass comment.

Other parties interested in acquiring Saab assets include Chinese carmaker Youngman, Indian commercial utility vehicles manufacturer Mahindra and Mahindra and Turkish private equity firm Brightwell Holdings.

The Scandinavian automaker has filed for bankruptcy in a Swedish court, is not interested in the company that offers more, but the one whose proposal has the best benefits for creditors, employees and the region.

Saab hit crisis point early last year after its 2010 sales fell short of target.

Its production line came to a standstill in April and it has not made a car since then.
Swedish Automobile tried several times to line up buyers or financing, but all efforts so far have failed.