Sources indicate Mahindra is interested in purchasing a majority stake in NEVS in order to re-launch the Saab brand all around the world. Although Mahindra is a relatively popular company in its home country, its sales are dismal at best in Europe and it has never had a significant presence in key markets such as the United States and China. Purchasing Saab would provide the company with a globally-recognized name and help it transition into a major player in the auto industry.
Interestingly, rumors indicate Mahindra would follow the path blazed by Volvo parent company Geely and move Saab up a notch on the market in order to take on well-established luxury automakers like Mercedes-Benz, Audi and BMW.
Dongfeng’s interest in Saab is also vague but the company appears to be primarily interested in the Phoenix platform that Saab was developing when it filed for bankruptcy in 2011. Dongfeng could help the Swedish firm bring the Phoenix platform to the market in exchange for the rights to use it in China.
NEVS has confirmed that it is involved in talks with two Asian automakers but it has remained mum about the details of the negotiations. Crippled by financial issues, the company stopped Saab production last May and it is believed to be seeking investors in order to avoid closing the Saab factory’s doors once again.
If NEVS inks a deal with Mahindra and Dongfeng, the alliance will be formally announced before the end of the month.
Leave a Reply