Santana, the Spanish offroader maker, continues to negotiate a sale to either TagAz or Iveco as it struggles to survive Spain’s deep recession, a company official confirmed.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
He said the firm, owned 100% by the Andalusian government, is still negotiating a sale to either company and that it hopes to strike an agreement as soon as possible.
His comments come as workers rencently staged bitter protests against the government’s inabitlity to find a buyer for the company. Santana’s 360-strong Linares factory remains mostly idled amid plunging demand for its cars. The firm has accumulate losses of EUR80m in the past two years.
The Andalusian government has put Santana on the block in an auction for which final bids are due in the first quarter of 2011.
Truck maker Iveco last month said it will renew an option to purchase the company but whether it will actually exercise it is anyone’s guess as it is also facing financial trouble. Russian SUV maker TagAz has also expressed interest in bidding for Santana. Both Iveco and TagAz did not return phone calls.
Iveco and Santana have a joint venture to make the Massif SUV. If sale negotiations collapse, Santana is understood to want to buy the Massif’s intellectual property.
