Super Swede

With Ford now officially saying that they are reviewing their Volvo operation and rumors that GM may look to cut the Saab brand, I'll take a drive down memory lane and once again bring up the idea of Sweden consolidating its brands under one owner. Now, I have no idea who might be interested in such a deal, but it would probably be in the best interest of Sweden to keep its manufacturing base healthy and hopefully someday prosperous. Word has it that the Swedish government is talking with Ford and GM about the current situation, although it's unclear what the government might be in a position to offer.

It's important to keep in mind that any sale of Volvo would require some of the proceeds to pay off the obligation tied to Volvo's assets. That means that anything less than a princely sum would yield very little for Ford. It is for this reason that you'll probably hear time and time again of talks breaking down over disagreements in price.

I’m not convinced that Sweden is capable of support two automakers. If someone were to acquire Volvo, could they also pick up Saab at a discount from GM? Consolidating the Swedish automotive industry could help with economies of scale. Of course, with the current platforms being so wildly disparate it would take some time for any economies of scale to be realized. The other option is that a Chinese manufacturer could acquire Volvo and a Russian or Indian company could pick up Saab, or some combination thereof.