Spyker holds talks to build new version of 1950s Saab model

Spyker Cars NV, Saab Automobile's owner, is in talks with automakers to share technology and a platform for a new car based on a 1950s Saab model, CEO Victor Muller said.

“Discussions are already ongoing,” Muller said in a telephone interview on his way from Gothenburg, Sweden, to Saab's plant in Trollhaettan. “That will be on my plate for the next 100 days.”

The new small car would be tear-drop shaped, inspired by the Saab 92 model that was in production between 1949 and 1956, he said, declining to say with whom he's been negotiating.

Spyker, the Dutch maker of supercars, bought Saab in February from General Motors Co., completing a 14-month effort by GM to either unload the company or close it down.

Saab, which begins selling the new 9-5 model May 31, has spent the last three months restarting production and severing the GM ties.

“Saab is going to have to reignite interest in the brand, go back to its core values” of the 1980s and 1990s when it appealed to “creative” professionals such as architects, said Ian Fletcher, a European automotive analyst at IHS Global Insight in London. “Muller has to be optimistic.”

Saab sales goals

Saab aims to sell between 50,000 and 55,000 cars this year, of which 17,000 would be the new 9-5, Muller said. Next year Saab targets sales of 100,000 cars, including 40,000 9-5s and about 10,000 9-4X, a midsize crossover SUV to be built at a GM plant in Mexico starting in April 2011, he said.

Spyker, after considering the U.K. and Sweden, is leaning towards moving its stock listing to Stockholm from Amsterdam, Muller said, explaining just a fraction of its business remains in the Netherlands.

“I'm very optimistic about it,” Muller said of the Stockholm listing. “99.5 percent of our business is Swedish, is Saab, and we do feel that a listing in Amsterdam clearly is no longer logical in any way, shape or form.”

Saab aims to reach an agreement with a Chinese distributor within a couple months, he said, denying media reports this week that Saab and Beijing Automotive Industry Holding Co. have reached a distribution deal.

Ford says it might sell Volvo

Ford Motor is exploring the possible sale of Volvo Cars, the company said Monday.

The US automaker said it would "re-evaluate strategic options" for the Swedish brand.

It said its decision had been forced by the decline in the global auto industry and economic downturn.

"Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo," said Ford President and CEO Alan Mulally in a statement.

One of the options includes the sale of Volvo, which is based in Gothenburg, Sweden.

Ford said the review likely will take several months to complete.

Until then, Ford will continue working closely with Volvo as it implements its restructuring plan under CEO Stephen Odell, who was appointed to lead Volvo in September.

"Volvo is a strong global brand with a proud heritage of safety and environmental responsibility and has launched an aggressive plan to right-size its operations and improve its financial results," said Mulally.

He added: "As we conduct this review, we are committed to making the best decision for both Ford and Volvo going forward."

Mulally said the strategic review was part of Ford's plans to make sure it has enough money to survive the current downturn.

Ford and Volvo will continue to put in place processes that allow Volvo to operate on a more stand-alone basis, Ford said.

Ford bought Volvo for 50 billion kronor ($6.45bn) in 1999 following a bidding war with Volkswagen and Fiat.

The brand was profitable at first, but, more recently, it has been in the red.

Sales slipped 13.5 percent to 295,634 units in the first nine months of 2008.

In the third quarter, Volvo's pretax losses widened to $458 million from $167 million a year ago.

In response, Volvo cut 6,000 jobs this year.

Despite this, Odell was positive about the brand's future. "Outstanding safety, an increased focus on environmentally friendly vehicles and contemporary Scandinavian design will continue to be the foundation upon which we will build a strong Volvo business for the future." he said in a statement.

He said Volvo has a strong presence in Europe, North America and the Asia Pacific region.

Said Odell: "We are growing in key markets such as China and Russia, where we are the leading premium brand."