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Mahindra Joins Race To Bid For Sweden's Saab
This is not the first time Mahindra has moved to purchase a major carmaker. It had successfully taken over South Korea's Ssangyong in 2010 and has already launched its models in India. It took over the Korean SUV specialist when it was in financial doldrums after its Chinese owner backed out.
Now Saab is also in a similar if not worse condition. General Motors which owned the carmaker decided to off load it in 2009 when it was in deep financial crisis following the recession. When it could find not a single buyer, it decided to file for bankruptcy.
The Swedish government also refused to help Saab or its thousands of workers who face job losses. Several carmakers have tried to takeover Saab but have backed out after General Motors refused to part with the intellectual property rights on Saab's 9-4 x and 9-5 sedans. It is common knowledge that intellectual property holds more value than Saab's physical properties.
In India, Mahindra and Mahindra is expected to place its bid within the next 15 days. Senior management members including Dr Pawan Goenka and Anand Mahindra will be meeting later this week to finalize the bid.
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