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February 14, 2012
China's BAIC in deal to buy parts of Saab: report
Published: 13 Dec 09 10:50 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/23816/20091213/
Beijing Automotive Industry Holding Co. (BAIC) of China has inked a preliminary deal for the acquisition of parts of Saab Automobile, according to media reports.
- Professor trashes Saab suitor Spyker (11 Dec 09)
- BAIC closer to Saab deal with loan approval (4 Dec 09)
- Sweden hails month- long Saab reprieve (2 Dec 09)
Reportedly signed at the weekend in Sweden, the deal also allows BAIC to integrate Saab technology into its own vehicles and will be partially financed by loans from state banks in China.
BAIC already has a 20 billion yuan ($2.93 billion) line of credit from Bank of China, the sourced told the Wall Street Journal.
The exact financial terms of the deal weren’t available, however.
GM spokesperson Michael Albano refused to comment directly on discussions between the US automaker and BAIC over the possible acquisition of Saab assets.
"We have discussions in process with many organizations about Saab," GM Albano told the Wall Street Journal.
The source added that BAIC is continuing its weekend negotiations with Saab officials in Trollhättan in western Sweden and “exploring ways to reach further deals for cooperation”.
BAIC is China’s fifth largest carmaker and has previously indicated it’s not interested in purchasing Saab’s Trollhättan factory.
By selling Saab technology, GM is paving the way to close down Saab’s head offices and other parts of the Swedish automaker.
Last weekend it was revealed that GM, which is negotiating with several buyers, is prepared to have Saab split into several companies as the Riksdag has requested.
Throughout the autumn, a number of new companies have been registered, opening up the possibility that each one could be sold as a separate entity.
Saab spokesperson Eric Geers refused to confirm the Wall Street Journal report.
“That’s nothings that’s been confirmed, either from Saab or BAIC. I have no idea where it’s coming from,” he told the TT news agency on Sunday.
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Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
Now we know why they had no real interest in selling to Konegsegg.
They are breaking the company up and stripping out the assets.
Maybe now the Swedish government will realise what sort of liars GM are.
Sweden should look at putting together an electric car. We have cheap electricity through hydro. The buildings and the infrastructure will still be there...
It appears from previous reports that BAIC is bidding on the old generation tooling and rights for the old generation 9-5 & maybe 9-3. That should not be a problem for the future.. and maybe help GM & Saab get some financial return for that investment from 10-15 years ago.
Tell that to the people who are about to lose there jobs. You are not going ot pay there bills.
R.S.
Texas Realtor
If it isn't economical then it is better to just bite the bullet.
There is no place in the world for a company like SAAB producing cars on it's own. They need to be part of a large car company that is willing to invest in the brand unlike GM. That's not likely to happen now.
Get over it!
OK, lets have it your way.
Why are you not arguing that all US companies who recieved bail outs such as banks and car companies, should have been allowed to be bankrupt.
Do you agree they should all have been bankrupted, all employees fired and permanently closed?
Personally I think one of them should have gone under even if it was simply a punishment for the US auto makers being so stupid that they could not see beyond the SUV etc..
But as I am not a citizen, resident or taxpayer in the US, I don't really care that much about what the yanks do. However Sweden is another matter.
No government can afford to see the collapse of the financial system, due to the large scale effects. Although the same effects caused by the automobile industry are minimal in comparison and are easily absorbed.
SAAB should have gone 10 years ago!
This is NOT news, this is missleading NEWS.
When you want to bring NEWS do your researches and bring it correct!!!
Saab is only selling the OLD TOOLING from the OLD9-3 and OLD9-5 to BAIC!!
And that IS GOOD NEWS, with that money and a better to sell (READ smaller) company a deal with Spyker or ........... will be more clear now then before!!
So "THE LOCAL" If you bring NEWS than do IT RIGHT and don't scare people!
I was hoping that the Swedisch Press was more positive, I think that you Guy's are hoping that Saab will close down!!! Well I hope not and for all the POSITIVE thinkers overhere, Let's make it a beautyful christmas for all the Saab employees and there family's, LET SAAB ALIVE AND KICKING!!!!!!!!!!!!!
You both argue for closing Swedish companies but make excuses for keeping open US companies.
The double standards in your answers speaks for itself.
Are you two going to employ the thousands of workers made unemployed by closing SAAB? The answer to that is no.
Closure of SAAB an Volvo will rip the heart out of Swedish manufacturing for the next decade and give a lot of support to the far right, which would cause severe damage to Sweden's standng in the world.
Thousands will lose not only there jobs, but there homes when they fall behind on there mortgage payments.
Regarding SAAB, all its profits were declared outside Sweden, the same with Volvo.
How and on which planet would the closure of SAAB give support to the far right? Do you mean SD?? If anything it will move the support more towards the left, the Soc Dem and V.
If SAAB is really profitable as you suggest in your last paragraph, why aren't there more companies lining up to buy it?
The company is not dead, even though your words read like you would take delight out of killing it.
@ Trollspeed
The local regularly leaves out important facts, which distorts the stories significantly.
They are either terrible journalists, deliberately working to an agenda or both.
Also the money GM earns from this sale will go to GM not to SAAB Sweden. They have been declaring profits outside Sweden since taking it over, whch distorts the overal picture.
That's a good sign, Hoping that the "guy's" will get the deal done in Zurich right now! Fingers crossed!!!!!!
Your statement
"I'm sure they can find a cheaper, smaller home after selling their homes that they can't sustain."
is disgusting.
These people are ordinary workers, with ordinary houses, not mansions. If they get in financial problems, they can not sell as the market is depressed at present. As well they don't have mansions, they have ordinary small family homes.
What planet are you on?
Have you ever even been to Sweden?
Yes I have been in Sweden for a while... if I get in financial trouble I will sell my house and buy a cheaper one or rent. There are plenty of solutions other than begging the government to bail out a money-losing company.
It's easy to claim that GM was misreporting SAAB's profits. It's not so easy to explain why GM can't find buyers for SAAB if it's actually profitable. Surely it would be in GM's interest to disclose SAAB's profitability in order for GM to get the best price on the sale of SAAB.
Please post you business case as to how SAAB can become a profitable (or at least break-even) company in todays market place. I will be interested in a good laugh.
Nemi baby,
Please post you business case as to how SAAB can become a profitable (or at least break-even) company in todays market place. I will be interested in a good laugh.
Just a silly guy....................He didn't know better.......................High IQ even..........
to answer your question "Why are you not arguing that all US companies who recieved bail outs such as banks and car companies, should have been allowed to be bankrupt."
because americans can print their green paper and make chinese buy their paper all the time, can you swedes print your krona debt and make chinese buying them?
until then you are not gonna bailout your car company and workers as well.
Spyker, now that is more funny than Koenigsegg! What is GM thinking with these supercar makers? What happened to the legitimate bidders?
Spyker has never made money.
Spyker has never made an acquisition of this scale.
Spyker has never managed a manufacturing company of this scale.
Spyker has never managed a distribution company of this scale.
Spyker can't turn around its own company,let alone SAAB.
This is not Ed Whitacre's finest hour. Why not sell SAAB to professionals? Shame on GM!
Sweden will have to re-shape their business plan if SAAB is to be sucessful, even if bought. A Chinese luxory car??? Would Probably be very hard o sell in US. Communism is not associated with luxory/quality.
There is much to much negativism here about Saab and socialism.
Those Swedes who go on about Swedes losing jobs as though they just got a mosquito bite must suffer the capitalist disease of the American mind-set and should apply for jobs with corrupt and dying GM, and failing that, apply for a job on Wall Street.
Rennsport already has two Swedish autos and is looking for a third, so he is, apparently, not among the statistics of the unemployed, thus he is good for Saab and Sweden..
He should also count himself lucky to have the financial assets to collect high-end autos , but his Texas realtor sign-off has me puzzled.
Who is buying real estate in Texas in the midst of the American Depression?
@ Nemesis
Painful as it seem, and sad for people losing their jobs, all IPR and assets were stripped long ago, SAAB has not produced good technology for some time, and that is the truth.
As far as the people concerned, look on the bright side, a good kick in the butt, although it will knock a few down, and yes some will stay in bidrag costing the state a lot of money, will turn positive as many will start things of their own, while others re-tool and go on and contribute to society, you underestimate survival and peoples fighting spirits.
We all trust that there are still good people with talent working there and that not all good IPR has jumped ship many months ago, which always happens when things get tough.
So please stop whining, as many will think that your only source of meaningful dialogue is at the local, you take shots at everyone and their daughter, with an opinion on any subject, conduct unbecoming a female and so un lady like.
An opportunity to make money like this won't come again in a hundred years.
First to you're reply (16): You both argue for closing Swedish companies but make excuses for keeping open US companies. And the double standards in your answers speaks for itself.
To be clear I have not even commented with regards to this, therefore I m a little confused to where you get this information from, and your conclusion to the double standards has no grounds to base on.
You also say that "Closure of SAAB and Volvo will rip the heart out of Swedish manufacturing"
I think the SAAB issue, which if you consider that the company have not made a profit in the last 20 years, it is then inevitable that the company should be closed down. Or in the issue of Rover in the UK, the Chinese bought the production tools along with the company name, but left the factories because production costs are too high. This I think. Is exactly the same problem Sweden has with SAAB, and it also looks to be going to the exactly in the same direction as Rover.
If jobs are lost as a result of this, I am very sympathetic to the people. But the Swedish people need to get over the fact, that the only country where SAAB has it's largest market share is Sweden. Should we just streamline supply to this demand, maybe then the patriots will be happier if this were the case, in at least they still get what they want.
SAAB was allowed to get too big, without a safety net, or maybe now they have reached the end of their product life cycle?
It's an old theory. You speak like a fiction communist in your mind.