Europe's news in English

COPY LINK

CARS

Saab CEO denies Fiat merger rumours

The head of Saab Automobile on Tuesday denied rumours that the Swedish automaker was in discussions with Italy’s Fiat over a possible takeover.

Published: 5 May 2009 10:53 CEST

Saab CEO denies Fiat merger rumours

According to Saab CEO Jan Åke Jonsson, there are a number of serious bidders for Saab Automobile, but Fiat isn’t among those currently in discussions with the struggling Swedish carmaker.

“It was the head of Fiat who put two and two together and turned it into four, but that’s nothing I want to speculate about. We aren’t holding any discussions with Fiat,” Jonsson told the Södermanlands Nyheter newspaper on Monday night.

Fiat-head Sergio Marchionne on Monday announced plans to create a new European auto giant by combining Fiat, US-based Chrysler, and Alfa Romeo with the General Motors European brands Opel, Vauxhall, and Saab.

Eventually, the combined company would be spun off from the rest of the Fiat industrial conglomerate and listed as a stand-alone car company.

Jonsson added that around ten interested buyers have visited Saab’s Trollhättan headquarters in western Sweden, although he refrained from naming any of Saab’s suitors.

“We’re expecting an indication of their interest this week,” he said.

Marchionne traveled to Berlin on Monday to discuss Fiat’s plans for Opel with the German finance minister Karl-Theodor zu Guttenberg and foreign minister Frank-Walter Steinmeier.

“From a technical and industrial point of view this is a marriage made in heaven,” he said of the plans to merge with Opel.

The state secretary at Sweden’s industry ministry in charge of managing the government’s response to the auto industry crisis, Jöran Hägglund, confirmed Monday that Fiat had made contact with the Swedish government, but declined to elaborate.

“The Swedish government has also had contact with Fiat. But overall we don’t have much more to say right now,” Hägglund told the TT news agency.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

From lizards to water, eco-bumps snag Tesla's giant Berlin car factory

Tesla's gigafactory outside the doors of Berlin. dpa-Zentralbild | Patrick Pleul

“When I saw on TV that the Tesla factory was going to be built here, I couldn’t believe it,” said Steffen Schorch, driving his trusty German-made car.

The 60-year-old from Erkner village in the Berlin commuter belt has become one of the faces of the fight against the US auto giant’s first European factory, due to open in the Brandenburg region near Berlin in July.

“Tesla needs far too much water, and the region does not have this water,” said the environmental activist, a local representative of the Nabu ecologist campaign group.

Announced in November 2019, Tesla’s gigafactory project was warmly welcomed as an endorsement of the “Made in Germany” quality mark – but was immediately met with opposition from local residents.

Demonstrations, legal action, open letters – residents have done everything in their power to delay the project, supported by powerful
environmental campaign groups Nabu and Gruene Liga.

Tesla was forced to temporarily suspend forest clearing last year after campaigners won an injunction over threats to the habitats of resident lizards and snakes during their winter slumber.

READ MORE: Is Germany’s Volkswagen becoming ‘the new Tesla’ as it ramps up e-vehicle production?

And now they have focused their attention on water consumption – which could reach up to 3.6 million cubic metres a year, or around 30 percent of the region’s available supply, according to the ZDF public broadcaster.

The extra demand could place a huge burden on a region already affected by water shortages and hit by summer droughts for the past three years.

Local residents and environmentalists are also concerned about the impact on the wetlands, an important source of biodiversity in the region.

Tesla Street

“The water situation is bad, and will get worse,” Heiko Baschin, a spokesman for the neighbourhood association IG Freienbrink, told AFP.

Brandenburg’s environment minister Axel Vogel sought to play down the issue, saying in March that “capacity has not been exceeded for now”.

But the authorities admit that “the impact of droughts is significant” and have set up a working group to examine the issue in the long term.

The gigafactory is set to sprawl over 300 hectares – equivalent to approximately 560 football fields – southwest of the German capital.

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”,
according to group boss Elon Musk.

In a little over a year and a half, swathes of coniferous forest have already been cleared to make way for vast concrete rectangles on a red earth base, accessed via the already iconic Tesla Strasse (Tesla Street).

German bureaucracy

The new site still has only provisional construction permits, but Tesla has been authorised by local officials to begin work at its own risk.

Final approval depends on an assessment of the project’s environmental impact – including the issue of water.

In theory, if approval is not granted, Tesla will have to dismantle the entire complex at its own expense.

But “pressure is being exerted (on the regulatory authorities), linked to Tesla’s significant investment”, Gruene Liga’s Michael Greschow told AFP.

In early April, Tesla said it was “irritated” by the slow pace of German bureaucracy, calling for exceptions to the rules for projects that help the environment.

Economy Minister Peter Altmaier agreed in April that his government “had not done enough” to reduce bureaucracy, lauding the gigafactory as a “very important project”.

Despite Germany’s reputation for efficiency, major infrastructure projects are often held up by bureaucracy criticised as excessive by the business community.

Among the most embarrassing examples are Berlin’s new airport which opened last October after an eight-year delay and Stuttgart’s new train station, which has been under construction since 2010.

Brandenburg’s economy minister, Joerg Steinbach, raised the possibility in February that the Tesla factory could be delayed beyond its July planned opening for the same reason.

SEE ALSO: Tesla advertises over 300 jobs for new Gigafactory near Berlin

SHOW COMMENTS

Url copied to clipboard!