[ Prev by Date ] [ Next by Date ] Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos Saab/Ford Posted by Martin Weiss (more from Martin Weiss) on Thu, 7 Sep 1989 22:53:16 The following message(s) appeared on the Dow Jones News Retrieval thisweek:>From: DowJonesno39sdcx6spamx782andrewTo: bb+dow-jonesno39sdcx6spamx782andrewSubject: Ford, Saab-Scania Confirm TalksDate: Wed, 6 Sep 89 06:07:57 -0400 (EDT) BRUSSELS -DJ- Sweden's Saab Scania AB and Ford Motor Co. of the U.S.confirmed they are discussing ''closer cooperation in various areas ofthe automotive business.'' At a hastily called news conference in Stockholm yesterday, Saab-ScaniaChief Executive Officer Georg Karnsund said ''serious'' talks with Fordhave been under way for several months. Nevertheless, a joint statement by the companies said the ''discussionsare still at an early stage,'' making it improper ''to speculate on theirpossible outcome.'' No further comment or announcement will be made''until conclusions have been reached,'' the companies said. Karnsund and Ford officials, citing a confidentiality agreement betweenthe two auto concerns, declined to respond to most questions about thetalks or speculate on when an agreement might be reached. The Saab-Scaniachief did insist that the sale of the entire Saab car division to Fordwasn't under discussion, ''at least for the time being.'' But he didn'trule out the possible sale of a majority stake in the struggling cardivision. Analysts said the companies' joint statement implied Saab-Scania andFord might go beyond previously rumored collaboration in cars and forgea heavy truck partnership as well. Broadtape 8:20 AM Sept. 5>From: DowJonesno39sdcx6spamx782andrewTo: bb+dow-jonesno39sdcx6spamx782andrewSubject: Ford, Saab-Scania Confirm Talks -2-Date: Wed, 6 Sep 89 06:08:17 -0400 (EDT) If Saab-Scania AB is ultimately acquired by Ford Motor Co., it couldmark the beginning of a consolidation in the worldwide automotive business. The industry has substantial and growing excess manufacturing capacity,largely because of the aggressive expansion of Japanese auto makers intothe U.S. and Europe and into all segments of the car market. Europeanauto makers, including Saab, have been hurt badly in recent years bydeclining sales in the U.S., which for some is their biggest market. Ford has been seeking to acquire a European luxury car maker in recentyears to strengthen its image and its position in the European automotivemarket. Separately, Saab-Scania headed off a possible clash with the StockholmStock Exchange by disclosing that the car division's first-half lossreached 800 million Swedish kronor. Saab-Scania predicted that the ''negativetrend'' will continue at about the same rate in the second half, wideningthe division's full-year loss before tax to 1.6 billion kronor. It hadpretax profit of 11 million kronor last year. Despite continued high profitability at the truck division, pretaxprofit for the full Saab-Scania group fell 30 pc in the first six monthsto 902 million kronor from 1.29 billion kronor a year earlier, the companysaid. Saab-Scania normally issues financial reports at four-month intervals. But after the Stockholm Stock Exchange requested clarification of thecar division's status to halt market speculation, the company preparedthe first-half report over the weekend. Broadtape 8:25 AM Sept. 5 Posts in this Thread:
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