Saab, the Swedish car manufacturer owned by General Motors (GM), is understood to have sold two unused production lines to Beijing Automotive Industry Holding Corp (BAIC). The deal with BAIC involves Saab selling the production tools to make 9-5 and 9-3 models, which it no longer produces. BAIC, which lacks its own brand name, would manufacture similar cars in China, probably under a different name.

The two bidders interested in buying Saab are thought to be Spyker Cars, a Dutch speciality carmaker, which has Russian backing and has publicly declared its interest, and Renco Group, the vehicle of Ira Rennert, the US financier. Koenigsegg, the Swedish sportscar maker, pulled out of a deal to buy Saab two weeks ago after six months of negotiations, but last week GM said that it had received new "expressions of interest" and that it would decide at the end of this month if a deal could be agreed.

If not, it would begin an "orderly wind down of the global Saab business". Saab employs more than 3,000 people in the UK at dealerships and its UK head office. On Friday BAIC obtained a $2.93 billion line of credit from the Bank of China. Saab has been reorganising its businesses to meet conditions to receive a loan from the European Investment Bank.

The Beijing based company, which recently launched a self-made electric car, is seeking to compete with more successful local rivals such as SAIC or FAW, which have winning partnerships with China’s market leaders GM and Volkswagen. BAIC has tie ups with Daimler and Hyundai, but is looking to boost production figures and car making capability by having Saab on board. The company’s first step was to buy over production equipment of the previous generation Saab 9-5 – production of the ‘new’ car will start early next year.

Source: Tomes Online
Source: Gasgoo




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