BAIC gets a piece of Saab
- Source: Global Times
- [08:14 December 15 2009]
- Comments
A visitor walks past Saab's logo at the 4th Shanghai Imported Auto Exhibition in September. Photo: IC
By Sun Zhe
Some assets of General Motors' Swedish Saab unit will be acquired by Beijing Automotive Industry Holding Corp (BAIC), China's fifth-largest automaker, BAIC announced in a press release Monday.
Technology and production equipment for three Saab platforms, including the 9-5 and 9-3 sedan models, were purchased by BAIC, along with intellectual property for two series of turbo engines and transmissions, according to the press release, which did not reveal the financial terms of the deal.
"The deal would offer BAIC technology it badly needs to innovate its own sports sedan brands," said Li Menghai, a senior auto analyst with TX Investment Consulting.
Saab would help BAIC, a partner of Mercedes-Benz and Korean automaker Hyundai, adopt those technologies to develop new models under BAIC's own brands, said the release.
Jan Ake Jonsson, managing director of Saab, said in another release that the deal was "excellent for both parties, now and for the future."
"We have developed a good relationship with BAIC and look forward to working with them to integrate this Saab technology into their future vehicles," Jonsson said.
Swedish sports car maker Koenigsegg Automotive had a deal with GM to buy Saab before November.
But by the end of last month Koenigsegg had pulled out and GM said that it would close Saab if the Swedish auto brand had not been purchased by the end of the year.
BAIC was not interested in the entire Saab operation in Trollhattan, Sweden, according to an earlier Reuters report, citing an anonymous BAIC executive. A recent report by Caijing magazine said BAIC has received 20 billion yuan ($2.93 billion) in loans from Bank of China.
