What's The Best Place For Your Teen To Learn How...

Bob Lutz: Saab and Volvo should merge

 
9 1,425 views Mar 5, 2009

Lutz sees a merger between Saab and Volvo as a way for both GM and Ford to “get rid of a problem”

Lutz sees a merger between Saab and Volvo as a way for both GM and Ford to “get rid of a problem”

Enlarge Photo
Swedish carmakers Saab and Volvo are in a similar predicament. One is owned by struggling Detroit carmaker General Motors and the other by Ford, and both are being spun-off from their respective parent companies in light of significant losses over the past couple of years. For Saab, GM simply cut its ties and the carmaker is now in the process of seeking a new owner. Volvo, on the other hand, is being auctioned off by Ford to the highest bidder.

While both of these solutions appear to be the most practical given the current financial state of the two carmakers, GM vice chairman and product czar Bob Lutz thinks a better option would be if the two simply merged. "That way both we and Ford get rid of a problem," Lutz told Swedish newspaper The Local.

Whether or not a merger between two companies with repeated losses and a similar product lineup is a good idea remains to be seen, but the concept is nothing new. Saab and Volvo considered merging back in the 1970s and have also looked at sharing models and platforms over the years.

Despite the merger suggestion, Lutz confirmed that the main objective remains to find a buyer for Saab and we suspect Ford has a similar plan for Volvo. Saab managing director Jan-Ake Jonsson revealed yesterday that there were a total of five parties interested in acquiring the firm and the first bids for Volvo are expected to be submitted to Ford as early as next month.



Tags:
Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (9)

  1. ma_Laz avatar Laz Posted: 3/5/2009 10:53am PST

    The more I read about Lutz the more I think he should go! I would never wish any ill will against anyone but the bad feelings are starting...
     
    Post Reply
    Vote
    Bad stuff?

  2. ma_saabfan avatar saabfan Posted: 3/5/2009 11:26am PST

    Sorry you have lost your credibility as far as running a car company is concerned. Therefore stay retire, please.
     
    Post Reply
    Vote
    Bad stuff?

  3. ma_NoNameDenton avatar NoNameDenton Posted: 3/5/2009 12:06pm PST

    Interesting idea, but not a good one
     
    Post Reply
    Vote
    Bad stuff?

  4. ma_adamk avatar adamk Posted: 3/5/2009 12:46pm PST

    Right, they're both originally Swedish and, umm, that's about it. For example:

    - Branding: Safe (Volvo) versus sporty (Saab)
    - Platforms: Ford (Volvo) versus GM (Saab)
    - Engines: Mostly naturally aspirated (Volvo) versus turbocharged (Saab)

    These two could eventually go together the way Peugeot and Citroen do under the PSA umbrella, but it would take years to realize any potential cost savings. I doubt either brand has that much time.

    Mr. Lutz: any chance you could move your retirement up a few months? As an unwilling stakeholder, I'd rather put my tax dollars elsewhere.
     
    Post Reply
    Vote
    Bad stuff?

  5. ma_Mike avatar Mike Posted: 3/5/2009 1:58pm PST

    I think this would be intersting, but not necessarily in a good way. Considering Saab and Volvo are and have been Sweden's only volume car manufacturers, wouldn't that make fans of Saab and Volvo alike uncomfortable since both have completely different heritage and have always been competitors? I wish both would've gotten back to their heritage, Saab building quirky, rally-bred turbocharged hatchbacks, and Volvo building safe, boxy RWD sedans like the 240 etc.
     
    Post Reply
    Vote
    Bad stuff?

  6. sidraja avatar Siddarth Raja Posted: 3/5/2009 5:19pm PST

    Under Lutz's tenure Saab built a rebadged Impreza and a rebadged Chevy Trailblazer. They pissed away their goodwill (and didn't even make a lot of money doing it like Porsche) and now this guy has the gall to keep giving advice about its future.
     
    Post Reply
    Vote
    Bad stuff?

  7. ma_samuelesm avatar samuelesm Posted: 3/5/2009 5:32pm PST

    Well don't sell anyone to a Chinese car company. They will steal from them just like they did with Ssang-Yong.
     
    Post Reply
    Vote
    Bad stuff?

  8. ma_C. Alexander Brown avatar C. Alexander Brown Posted: 3/5/2009 7:07pm PST

    Bob is right. If these two companies joined together, they would become a technological powerhouse. That the Swedish government does not understand that demonstrate the power of doctrinare ideology over good sense and foresight. The current world economic will end. The world automobile market will revive. Volvo and Saab should be there to export to the world. Frankly not to see this is beyond stupid. I am reminded of the Republican bigwig in the George H. Brush administration who said that he did not care if people made Potato chips or Computer chips, as long as they are making chips." Are the Swedes sheep that they stand still for this nonsense?? To let these two great companies fold would be a piece of modern Ludditism, and destruction of technical capability and corporate engineering human capital.
    C. ALEXANDER BROWN
    Rockcliffe Park, Ottawa, Canada.
     
    Post Reply
    Vote
    Bad stuff?

  9. C. Alexander Brown avatar C. Alexander Brown Posted: 6/28/2011 8:31am PDT

    Wuz I right or wuz I right? In March 2009 I foresaw what would happen, and lobbied the stupid right wing Swedish Government on this idea, to no avail. The various Swedish Engineers' organizations, who don't know that polite debate & minor protests get you nowhere in this tough world being increasingly ruled by ultra-conservative ideologies, raised their collective voices. To no avail. As Lenin wrote "The true capitalist is the one who will sell you the rope with which you are going to hang him." Ditto right wing conservatives. Today, as I write this, the Chancellor of Germany is sucking up to the communist premier of China, giving him the red carpet treatment. Let's not forget that Lutz wrecked SAAB & Ford wrecked VOLVO. China won. Yippee.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.