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BAIC deal allows Saab to operate through first quarter: report

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08:19 CET+01:00
Saab Automobile reportedly received 1.4 billion kronor ($200 million) from China's Beijing Automotive Industry Holding Co. (BAIC) in exchange for access to some of the Swedish automaker's technology.

According to the Dagens Industri newspaper, the money landed in Saab accounts last Friday.

Sources tell the newspaper that the money is sufficient to keep Saab running until the end of the first quarter in 2010.

News of the deal, which involved Saab offering technology from its 9-3 and 9-5 models to BAIC, was made official on Monday.

When the last Saab 9-5 convertible rolls off the assembly line in Trollhättan in western Sweden in a few months, the pressing machines will be disassembled and sent to China.

The Chinese company said the deal was an "important milestone for BAIC and Saab's strategic cooperation" and allowed for the two carmakers to explore additional cooperative ventures in the future.

Saab will also help BAIC develop its own-brand cars using the Swedish automaker's technology, it said.

The deal comes after BAIC, China's fifth largest automaker, and Swedish high-performance carmaker Koenigsegg gave up their joint bid for Saab last month, citing costly delays in the transaction.

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