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Beijing Auto mulling China production of Saab cars

  • Source: Gasgoo.com
  • [13:57 September 24 2009]
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Beijing Automotive Industry Holding Co. (BAIC) is mulling local production of Saab brand cars in China, media reported yesterday, citing an insider of the company.

A group headed by Swedish sports car manufacturer Koenigsegg is acquiring Saab from General Motors, and earlier this month Beijing Auto struck a deal to take a minority stake in Koenigsegg and help the latter close the funding gap it needed to buy Saab.

Speaking to reporters in Frankfurt last week, Saab CEO Jan-Ake Jonsson has also disclosed the intention to have local production in China, saying that his company plans to double its dealer number from about 15 to 30 in the country.

"Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience," Jonsson said, but it will need to revive sales before spending money to add manufacturing capacity in China.

Saab cars are imported into China and sold through the sales network of Shanghai GM, but as the sales via GM's China JV has achieved only limited success, Saab may need to rely on Beijing Auto to gain customers in the world's largest auto market, said a top executive of Koenigsegg.

As its sales contract with GM partner SAIC Motor will expire soon, Saab is seeking new partners in China. Beijing Auto has said that his company hopes to form an alliance with Saab just like Renault-Nissan.