[ Next by Date ] Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos Saab/Ford News Posted by R. Scott V. Paterson (more from R. Scott V. Paterson) on Tue, 24 Oct 1989 12:12:45 Ford and Saab Break Off Talks About Alliance[reprinted in part (saab related details only) from The Wall Street Journal, 10/23/89]Ford Motor Co. and Saab-Scania AB of Sweden broke off talks about a possible alliance afterFord officials concluded that the cost to modernize Saab's car operations would outweigh thelikely return.Saab, meanwhile, is left to continue its search for an ally to shore up its sagging car business. Saab said last week it 'has had and will continue to have contacts with other manufacturers.' Among the possible suitors is Italy's Fiat S.P.A, analysts said last week.Individuals close to the Ford side of the negotiations said late last week that the No. 2 U.S.auto maker lost interest as it became clear that the Swedish auto maker's automotive operationshad little to offer in the way of image or technology. Ford originally had seen a Saab allianceas a way to expand its presence in the European and U.S. luxury car markets. In addition,Ford and Saab has discussed a possible link between their heavy truck operations.But the talks on a heavy truck alliance apparently didn't go far. Some European analysts speculatedthat officials of Saab's highly profitable Scania truck operation balked at surrendering anyof their autonomy.Meanwhile, Ford officials became convinced they couldn't expect to recover the investment itwould require to make Saab's cars competitive in the increasingly crowded luxury market.Saab's problems were underscored Friday when the company announced that its car division hada 1.2 billion kronor ($186.1 million) loss during the first eight months of this year, slightlyworse than Saab-Scania had forecast in its first-half report last month. Overall, Saab-Scania'spretax profit during the first eight months of the year plunged 48.9% to 1 billion kronor ($155.1million) from 1.96 billion kronor ($303.9 million) a year earlier.Industry analysts in Europe said the most likely suitor for Saab now is Fiat. Saab and Fiathave worked together in the past, in once case developing jointly a new auto chassis that becamethe foundation of Saab's 9000 model, Fiat's Croma and Lancia's Thema. Last month, Saab-ScaniaChief Executive George Karnsund said his company has had talks with Fiat about a broader alliance. But the talks yielded 'nothing so advanced that we needed to ake a public announcement aboutit,' he said.-rsvp Posts in this Thread:
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