Ford Reportedly Seeks to Buy Saab’s Troubled Auto Division

Swedish auto maker Saab-Scania AB, facing mounting losses and layoffs, refused Thursday to confirm or deny news reports that Ford Motor Co. is a leading suitor for its ailing passenger car division.

Following a board meeting Thursday, Jan-Erik Larsson, head of Saab’s auto division, declined to clarify a report in the Stockholm tabloid Expressen that a takeover deal with Ford was imminent.

It has been rumored for several months that Saab is seeking a buyer to help salvage its crisis-ridden passenger car division and to enable it to develop a successor to its stock 900 model by 1992.

The 900 model, in recent years has run into hard times on the vital U.S. market. When it was developed, Saab managed to halve the costs by collaborating with Italian auto giant Fiat-Lancia.

This time Saab reportedly first turned to Japan’s Mazda, which is 25%-owned by Ford, and then turned to Ford itself.

According to the Expressen report, top-level negotiations with Ford are nearing their conclusion.