General Motors has reached an agreement to sell off part of its struggling Saab division to China’s Beijing Auto (BAIC). The deal would see BAIC take control of Saab’s rights assets and tooling assets of the past 9-5 and 9-3 models in order to build those vehicles in China.

Saab’s future has been uncertain for several weeks after a group led by Swedish supercar maker Koenigsegg suddenly withdrew its interest in purchasing the brand.

Beijing Auto was actually a part of the Koenigsegg-led group and had agreed to fund a considerable potion of the purchase in return for the rights which it has now secured.

What BAIC won’t be buying any of Saab’s current production or design technologies, leaving those aspects of the company still up for bidding. Currently two bidders are rumored to be the main rivals: Renco and Dutch exotic car maker Spyker Cars. A recent report in the Swedish daily Svenska Dagbladet pointed towards Spyker being the favored bidder, party because of its experience in the auto industry.

An unnamed Saab official quoted by the New York Times said that this sale, “would be good for Sweden, good for China and good for Saab.”

In the midst of all this uncertainty, Saab is preparing to launch its new 9-5 model, which is the first full overhaul of the car since it debuted 12 years ago.

So far GM has had little success in dividing up its company since it emerged from Bankruptcy. The company is in the process of closing its Pontiac unit but couldn’t find a buyer for the Saturn brand after a deal with the Penske Automotive Group fell through. A deal to sell Hummer to a Chinese industrial equipment manufacturer has yet to be completed.

[Source: NYTimes Blog]

The Swedish government is putting the pressure on General Motors, saying that it must make a decision this week on the sale of Saab if the deal is to go through by the end of the year. “They must at least have chosen one of the interested parties this week, otherwise it will be tough to complete a deal,” said Swedish Enterprise Ministry secretary Joran Hagglund in an interview published in the country’s daily newspaper, Svenska Dagbladet.

After the deal to sell Saab to a group led by Swedish supercar maker Koenigsegg fell through a few weeks ago, GM was all but ready to give up on its loss-making Swedish brand, when Dutch exotic car maker Spyker announced its interest. Yet another long shot, Spyker always seems to be able to find cash when it needs to, even running a Formula 1 team at one point.

GM has said that if a solid buyer is identified but a deal hasn’t been secured by the company’s self-imposed year’s-end deadline that it would be willing to continue to bankroll the company. GM spokesman Chris Preuss has said that the American auto giant is willing to continue to work to find a buyer for Saab but hinted that the wait might not be a long one saying that, “a decision about Saab is going to come very soon.”

The Swedish government does, however, have a say, as does the European Investment Bank, as both parties need to investigate a buyer’s business plan before supporting the purchase.

China’s Beijing Auto (or BAIC) has also expressed an interest in Saab, but is only after the company’s tooling a technology behind the previous generation of cars in order to build those vehicles for the Chinese market. BAIC had agreed to support the Koenigsegg-led deal in exchange for those assets but when that deal fell through has offered once again to buy them.

So far, GM has had little success selling off its many brands. The company is in the process of closing its Pontiac unit but couldn’t find a buyer for the Saturn brand after a deal with the Penske Automotive Group fell through. A deal to sell Hummer to a Chinese industrial equipment manufacturer has yet to be completed.

[Source: Reuters]

Yesterday’s positive news for the Saab faithful has once again been met with the grim reality of the Swedish automaker’s situation. Just 24 hours ago news emerged that China’s Beijing Auto (which supported the Koengisegg-led purchase of Saab) had secured $2.93 billion in loans from the Chinese government – which would presumably be used to purchase the European automaker in its entirety.

As positive as that news is, now word has emerged that Beijing Automotive Industry Holding Group (or BAIC) is only interested in certain Saab assets, such as tooling and technology. The Reuters source from which this information comes also said that BAIC is not interested in Saab’s manufacturing facilities in Trollhattan, Sweden.

Instead BAIC is interested in Saab’s old technology and is interested in selling the previous generation 9-3 and 9-5 models in China. Earlier reports had suggested that BAIC was scheduled to receive these assets in return for propping up the Koenigsegg purchase.

GM is still looking for a buyer for Saab but if one cannot be found this could very well be an untimely end to the Swedish automaker just as it prepares to launch its new flagship sedan, shown for the first time in North America just last week at the LA Auto Show (above).

[Source: Reuters1 and Reuters2]