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BAIC closer to Saab deal with loan approval

BAIC closer to Saab deal with loan approval

Published: 04 Dec 2009 16:32 GMT+01:00
Updated: 04 Dec 2009 16:32 GMT+01:00

Prospective Saab buyer BAIC has received approval for a loan of 20 billion Yuan, approximately 20 billion Swedish kronor ($2.9 billion), from the Bank of China.

BAIC has expressed its interest in purchasing the ailing car maker Saab from General Motors, but has declined to comment in more detail.

“20 billion Yuan is more than enough to build up the production,” Li Chunbo, analyst at Citic Securities, told Reuters news agency.

The newspaper Ny Teknik has revealed that BAIC has already made a deal to buy the production facility of the old Saab 9-5 model. Saab has refused to comment on those reports.

Enterprise Minister, Maud Olofsson, and State Secretary at the ministry, Jöran Hägglund, have met with the EU’s Competition Commissioner, Neelie Kroes. They emphasised how important it is that the EU Commission’s current review of Saab is carried out quickly. “She said that she understood very well that it is important to get a quick decision,” Olofsson told news agency TT.

The review is being undertaken to establish that Saab was not in financial difficulty as at 1 July 2008, before the financial crisis. This is required for Saab to be entitled to state support.

The government’s main task now is to meet with various interested parties and the government will try to sell the company to Swedish interests, according to Olofsson.

On Friday all EU Enterprise Ministers met in Brussels, where they hosted various GM representatives who were to discuss GM’s plans for their European enterprise. This mostly concerns Opel and Vauvhall, which is where the biggest reductions are to be expected in most EU countries.

At the same time the chairpersons of the Metal Unions Association, Stefan Löfven and Cecilia Fahlberg, are demanding that the respective EU governments take immediate and active measures in relation to the Saab situation. They are particularly demanding a central coordinator. “The Swedish government must immediately set aside human resources which are entirely focused on supporting Saab in finding a new buyer,” they said.

TT/Stuart Roberts (news@thelocal.se)

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Your comments about this article

10:05 December 5, 2009 by misssquirrel
The government has woken up then. Is this too little and too late?
21:04 December 5, 2009 by Mr B
Probably,but manufacturing seems to be dying in Europe,all going to the far east due to cheaper labour costs.Our skills and engineering knowledge more than make up for this though.Our Governments should do more to help.A lot of the UK's GDP is in the banking industry,and look were that got us.
21:20 December 5, 2009 by Flying Scotsman
This news comes as no surprise
10:49 December 6, 2009 by boby
Ahy should the government wake up? Are we living in the soviet union during the sixties? Its a private business.
19:39 December 6, 2009 by wenddiver
Why don't you ask all the rich turds in tuxedos to buy SAAB and make it a Swedish company again??? Oh, I forgot that would be nationalism and xenophobia, unlike the decent, caring, un-racist Communism of China. SOCIALISM IS NATIONAL SUICIDE..
19:52 December 6, 2009 by hopingagainsthope
What a wonderful article! It never mentions who/what BAIC is or why it would want to take over the moribund carmaker. I guess everyone else knows who/what BAIC is, huh? What an ignoramus I am. Of course I can see the clues and make my own inferences that it might be Chinese. Do you have any editors?

Come on Local. Get serious! Sigh.

I'll save people the effort of doing the research I did.....BAIC is Beijing Automotive Industry Corporation....courtesy of Reuters, a real news organization.
21:13 December 6, 2009 by misssquirrel
3billion can not be the price for Saab, I would be surprised if it was even 1biliion, BAIC must have other plans as well.
16:01 December 7, 2009 by irishmark
I hope I'm wrong, but I have a feeling this is heading the way of MG Rover. Bought by the Chinese, then the assembly line dismantled and moved to China...

A few jobs might survive at Trollhättan, but I can't see there being many.

It'll be a hard knock for the city, and although it's not the government's role to bail them out - during the transition period Saab's suppliers may be helped by support to restructure and find new customers and markets. When MG Rover went in the UK, the DTI put money into the Advantage West Midlands scheme, with some sucecss in helping e.g. plastic moulding companies to switch from car parts to mobile phone casings, etc. Many of them had just been making car parts for so long they'd never even considered they could just as easily target other newer (and more profitable) industries..
15:17 December 10, 2009 by rumcajs
@ boby

soviet union during the sixties? What does it have to do with that??? So France if comunist cos the state owns carmakers, right?
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