As per the sources, India’s biggest sport-utility vehicle manufacturer, Mahindra & Mahindra (M&M) is eager to buy parts of the bankrupt Swedish car manufacturer, Saab Automobile. After purchasing a part of Ssangyong, the Mumbai based automobile company is reportedly looking forward to arrange talks with the two court-appointed administrators who are in charge of the Saab’s bankruptcy case.
The report about buying shares of the Swedish car makers have been denied by Roma Balwanin, the spokesperson for Mahindra. The news cannot be confirmed as Bharat Doshi, Chief Financial Officer was not available to comment on this matter.
After 9 months battle in court, Saab Automobile was declared bankrupt on 19th December, 2011. In 2010, General Motors (GM) sold the Sweden based company, Trollhaettan to Dutch sports car manufacturer, Spyker Cars NV (SWAN) and thereafter, the company was renamed as Swedish Automobile NV.
According to Victor Muller, Chief Executive Officer, there are many potential companies from Sweden and other nations that are interested in purchasing a part or whole of the Saab Automobile.
Earlier this year, Mahindra and Mahindra bought 70% stakes in Ssangyong Motor Co. that was previously owned by SAIC Motor Corp. Buying shares in Ssangyong costed M&M around $368 million. After investing the huge amount, the company would look forward to gain profit from Pyeongtaek, the South Korea based company of technology and international sales network. Like Saab, Ssangyong too sought bankruptcy protection in the year 2009 after it failed to entice customers in SUV segment. Apart from M&M, a Turkish company is also rumoured to be interested in purchasing the Saab Automobile.
Saab Automobile’s 3600 employees are being paid salary by the Swedish Government under the country’s bankruptcy law. However, this assistance is provided by Government for a limited time period. The company is eagerly looking for investors who can bring things back on track.
