IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Saturday, February 11, 2012

Mahindra dropping out of race?

According to Swedish business news Dagens Industri, Indian vehicle manufacturer Mahindra & Mahindra might drop out of the race to buy the bankruptcy estate of Saab Automobile.

The reason that Mahindra now is reported to hesitate on making a bid is General Motors reluctance to license technology to Saab.

"It will be difficult for us and other car companies to take over Saab if GM is not cooperating," said an unnamed person from Mahindra to Dagens Industri.

Mahindra was hoping to secure a technology agreement from GM, but has now come to realize that GM has no intention of seeing any future Saab cars being built.

So far the only known bid has been placed by Chinese Zhejiang Youngman Lotus Automobile. This was an indicative offer, which is only a non-binding starting bid. Now Youngman has left Sweden and traveled back to China, but according to their spokesman in Sweden, Johan Nylén, they will return soon. Nylén would not comment on where in the process of acquiring Saab the company is.

"We can not comment on that, but we are proceeding forward," Nylén told TTELA.

Turkish Brightwell Holdings NV, which has been the party that has been most vocal in the media, yesterday told TTELA that it will place a bid on Saab.

"We will place a bid, but we want to do it the right way. It requires a lot of analysis. Saab is a huge company," Zamier Ahmed of Brightwell told TTELA.