Global Times - Beijing Auto to "cautiously re-evaluate" Saab deal

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Beijing Auto to "cautiously re-evaluate" Saab deal

Source: Gasgoo.com
[14:45 November 25 2009]
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Beijing Automotive Industry Holding Corp (BAIC) said today that it will "cautiously re-evaluate" General Motors' Saab brand deal after co-bidder Swedish automaker Koennigsegg pulled out of talks to buy Saab, Dow Jones reported.

Koenigsegg Group had struck a preliminary deal in September with Beijing Auto for the Chinese automaker to take a minority stake in Koenigsegg, helping the Swedish company close a funding gap to buy Saab and allowing Beijing Auto to produce Saab-brand models.

Beijing Auto, China's fifth-largest auto maker by sales volume, expressed regret the deal had fallen through. GM said yesterday that Koenigsegg has decided to back out of the deal to buy Saab, putting the future of the loss-making GM unit in doubt.

"Becoming more international ... has always been an important strategic goal for Beijing Auto," the company said in a statement. "In light of Koenigsegg's withdrawal, we will cautiously re-evaluate the [Saab] project and make appropriate plans."

Earlier this month, media reports said that Beijing Auto was planning to take over the previous-generation Saab 9-5 and produce it in China once the latest model is launched in Europe in April next year.