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Saab and BAIC agree to assets sale

By Tim Beissmann |

Beijing Automotive Industry Holding Co (BAIC) has purchased equipment and intellectual property rights to some of Saab’s fleet for 1.4 billion crowns (AUD$217 million), according to Swedish newspaper Dagens Industri.

The deal sees all rights of the outgoing 9-5 shifting to BAIC, including production infrastructure from Saab’s Trollhatten plant in Sweden, as well as engine and transmission technology from the 9-3.

Saab managing director, Jan-Åke Jonsson, said the deal was “excellent for both parties”.

“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 said.

New_Saab_9-5_Saab-3

The Chinese company echoed Jonsson’s sentiments:

“The deal is an important milestone in BAIC’s cooperation with Saab.

“It has laid a fairly good foundation for the two sides to further explore win-win cooperation,” it said in a statement.

Saab insisted that the new 9-5 – based on the Opel Insignia platform and unveiled at September’s Frankfurt Auto Show – was not part of the deal, and it confirmed production and marketing of the current 9-3 would not be interrupted.

2010-saab-9-5-frankfurt-live_-(12)

The money, transferred last Friday, is expected to be enough to keep Saab going for three months, relieving some of the pressure as GM tries to find a buyer before the end of the year.

Dutch sports car manufacturer Spyker is still believed to be the front runner to take over the battling Swedish brand.

Spyker C8 Aileron

Spyker CEO, Victor Muller, described the deal to offload old assets and equipment onto BAIC as “good news” for both his company and Saab.

Despite the technology being old, BAIC now has the opportunity to produce cars under its own brand name, something that most Chinese automotive groups have been doing for years.


 
  • Dott.FrugalOne

    *****PRIMO!*****

    Wonder if this is going to be like Rover/MG and just kept for local consumption only?

    Be good if they could sell SAAB’s overseas [if this allowed as part of the deal?] and kick them off @ $19,990 driveaway, WHERE it should have been all along.

    SAAB’s at Benz BmW coin, i dont think so…..

    Cheers

    F-0

    • DGS

      Maybe the Chinese can grab all of SAAB’s R&D while they are at it and put into production one of SAAB’s concept cars for $19,990 also. SAAB’s looking like it’s fate is now sealed. After this will Sweden still have a car industry? Volvo cars (part of Ford) all seem to be made in Holland these days.

      My thoughts go to the Blokes who are about to lose their jobs and see their company disolve in a GM firesale, leaving nothing but an empty factory and the bitterness of seeing the same cars they used to build return in a few years with a chinese badge and sub-Hyundai pricing.

  • guss

    Talk about a slow painfull death.

    The world will be a better place without Saab cars.

  • Projet -L

    They are selling the rights and intellectual property to the old 95 not the new one.
    Probably be the safest non VAG Chinese car going over there.

    Well done I say.
    And keep Saab in Europe if you can.

  • Davo

    There is sad news about from the media today.
    SAAB is to cease operations & will be closed by GM.There will be no government intervention in Sweden as the government has allegedly stated it has no business being involved in car companies,one could have said the same for GM in North America.
    Perhaps GM should have been let go completely or is this just the start of the end of GM as part of a program of orderly disposal of assets which could stretch out for years before it is wound up.
    I hope I am wrong.
    More than 3500 people will be affected & then add the contractors.
    It is like Holden or Ford closing up here.Imagine the large factories housing production lines becoming just storage for imported cars & parts warehousing.
    It would not be a nice reality.

  • Golfschwein

    Yes, sad. Had GM invested wisely in the brand, we’d have had light, small, medium and large SAABS, as well as a SUV, all on wisely shared GM platforms. There’s been nothing except dilution of the brand: 900 Turbos were quite revered around 1980.