Saab has flatly rejected rumours that CEO Jan Ake Jonsson is to join Volvo, describing the speculation as "flattering."

"That won't be the case, not at all," a Saab spokesman told just-auto from Sweden. "Jan Ake Jonsson has made a clear statement he will stay at Saab.

"He will continue to work for Saab, there is no possibility of going to Volvo."

Elements in Sweden say the speculation may have been triggered by the possibility of current Volvo chief Stephen Odell leaving to take up a position within Ford, leading to head hunters outlining a range of replacements.

A source within Saab added: "I would say the reaction we have is this is flattering, but he [Jan Ake Jonsson] has made a statement he will stay with the company."

Jonsson's rebuttal of a move to Volvo comes as Saab launched its new 9-5 sedan model in Sweden this week featuring turbo powertrains across all models and C02 emissions as low as 139g/km.

"This car is the start of a new era for our brand," said Jonsson. "We have created an advanced and distinctive product.