China's BAIC buys Saab assets

15 Dec, 2009

Beijing Automotive Industry Holding Co (BAIC) said on Monday it had acquired some assets of General Motors' Saab unit as part of a push to develop its own-brand cars. BAIC, China's fifth-largest automaker, will buy the intellectual property for Saab's 9-5 and 9-3 sedans and some equipment to make them for an undisclosed sum, leaving the fate of the Swedish-based automaker up in the air.
"This is quite separate from the discussion to sell Saab as a whole, and those negotiations are taking place," a Saab spokeswoman in Sweden said, declining to name potential bidders. "What this deal announced today does is that it partly helps the financing of the 'new' Saab...The deal with Beijing in no way compromises the sale of Saab to a new owner."
Luxury car maker Spyker has also expressed an interest in Saab and said on Sunday the BAIC deal would be good news as talks continued with GM. State-run BAIC is joining Geely Automobile Group and other fast-growing Chinese auto firms in chasing Western brands to take advantage of a steep global industry downturn.

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