Problems at General Motors-owned Saab could affect Ford-owned Volvo Car if component sub-suppliers shared by the two Swedish rivals ran into difficulties.
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Volvo Cars chief executive Stephen told Reuters it wasn’t clear if and how Volvo might be affected by Saab’s situation after it last month received temporary protection from creditors as it tried to restructure.
“My only hope is that whatever happens is done in an orderly fashion, so that it enables other people that might be affected to plan around it because we do share a supply base principally in Sweden,” Odell told the news agency.
“With Tier 2 and Tier 3 level suppliers, I don’t know what the components are that will be the issue and I probably won’t know until I’m in the problem.”
Odell also said Volvo was capable of surviving as a stand-alone business and hit out at reports a deal to sell the brand, possibly to Chinese auto manufacturers, was in the offing.
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By GlobalData“I’m often asked if I’m learning Chinese. In the end I am here to run a business and minimise the distraction of those issues,” he told Reuters.
But he declined to comment on a media report that Geely was interested.
Odell also said he had asked Sweden to initiate a scrapping incentive scheme along the lines of one that has recently boosted demand in neighbouring Germany – reports yesterday said February sales had risen about 21%.
