Saving Saab: Is Mahindra and Mahindra the Swedish carmaker's saviour?

One of India’s largest auto majors Mahindra and Mahindra has in the past said it isn’t averse to buying stake in foreign auto companies, but is the company now one of the white knights that will save Swedish car brand Saab?

National Electric Vehicle Sweden (NEVS), the investment group that owns the Saab brand, had announced that it had found two Asian investors who could help fund the revival of the company. NEVS has said that one of the investors was an Asian carmaker who would buy a majority stake in the group and would fund the company’s operating costs till early next year.

NEVS said that as per the agreement signed with the Asian carmaker it would issue new shares for the new buyer to acquire a majority stake in the company.

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The group also said that it was in talks with another carmaker from Asia on a joint venture to develop vehicles.

While reports in the European have said that the Asian buyer of the Swedish carmaker is Mahindra and Mahindra, the Indian automaker has stayed mum on the development so far.

Saab recently introduced the Saab 9-3 Aero sedan but has said that it will be focussing on electric vehicles in the future. While Mahindrahas had sedans like Verito in the recent past, its interest in the company could be due to Saab’s focus on electric vehicles.

Mahindra had bought out Indian electric car maker Reva and launched a newer version of the company’s e20 car earlier this year. However, it doesn’t have any other electric vehicles available currently.