Tuesday, December 15, 2009
Beijing in Saab technology deal
China's Beijing Automotive (BAIC) has agreed to buy some assets from General Motor's Swedish business, Saab.
The Chinese firm is buying the intellectual property for two of Saab's models, as well as some car parts, to use in their own-branded vehicles.
The entire Saab brand is still up for sale by General Motors. Dutch carmaker Spyker is in talks over a deal.
BAIC had previously been part of Swedish firm Koenigsegg's failed takeover bid for the whole of Saab.
However, that bid was called off earlier this year.
'Good relationship'
No details about the cost of Monday's deal were given, but Beijing Autos said it was "an important milestone in BAIC's cooperation with Saab".
John Zeng, an analyst with IHS Global Insight, said: "BAIC is one of the few major Chinese auto groups that still does not have its own car brand.
"Even though the Saab platform is old, it's still important for BAIC as it can finally get hold of something it can use later on for its own cars," he added.
Ake Jonsson, managing director of Saab, said 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," he added.
Analysts say there is still a chance that BAIC could bid for all of Saab on its own.
GM has warned that it will drop the Saab brand completely if it fails to find a suitable buyer.
DATED: 15.12.09
FEED: AW
