Saab said on Thursday it was too early to talk about a possible co-operation with Volvo Cars about developing a new model, scotching reported interest from its home turf rival.

Swedish business daily Dagens Industri had reported earlier that Volvo Cars, recently bought by China's Zhejiang Geely, was interested in cooperating with Saab in soft-top model cars, Reuters noted.

The newspaper had cited Volvo spokesman Olle Axelson, who later told the news agency that Volvo had had no actual discussions with Saab over product development, though the firm was always open to discussions with other car makers.

"Our priority number one ... is China operations right now," Axelson said. "There are absolutely no discussions and have never been any discussions on the executive level at Volvo to cooperate around product development with Saab."

Saab Nederland spokesman Dick Braakhekke said it was too early to talk about whether Saab and Volvo Cars would work on a new model together.

"There are talks on various levels, but I'm not aware of whether talks are on a product level. It's too early to say whether Saab and Volvo would work on a new car," he said.

Braakhekke also said Saab was in talks with Volvo Cars about parts delivery and the pick-up of cars at the factory. Saab was also talking to other manufacturers, he added.