Magna - Opel Deal Could Crush Saab's Revival Hopes

Although most people involved in the automotive industry - excepting Fiat of course - think the Magna - Opel alliance is a good thing, the guys over at Saab are afraid that the deal could affect their company's future. Swedish Prime Minister Fredrik Reinfeldt thinks that the Swedish brand is now in a difficult situation, especially because General Motors is more concerned with its German brand rather than working on securing Saab's future.

"I believe that anyone who has followed this closely realizes that this is a very vulnerable and difficult position that Saab is in," he said according to Swedish news agency TT.

Nevertheless, Saab continues its restructuring plans and last week revealed the battle for the company now involves two major bidders: Swedish luxury carmaker Koenigsegg, U.S. financier Ira Rennert and Renco Group, as well as Fiat, the company who's also linked with a merger with PSA Peugeot Citroen.

"Among these interested parties, three have been selected to continue negotiations on an acquisition of Saab," the company said in the document. "These negotiations will be carried out during the remainder of May in order to select the final candidate."

However, a slight interest also comes from China, where several car manufacturer are reportedly interested in taking over Saab. Geely, one of the names rumored to negotiate with the Swedish brand, denied reports. But even so, Saab's board said in mid-May that around five bidders have expressed interest in the company, hinting that Chinese players might be indeed among those negotiating a takeover.

"There are about five we want to talk to. There are a couple more we are also looking into. We should see which candidates are serious in the next week and a half," Saab's CEO said at that time. "I hope in a month or two we will have at least some agreement with somebody."