Breaking: GM Sells Old Saab Platform Rights to China's Beijing Auto
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]
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http://tictacdo.com/ttd/Comfort-Someone-Who-Is-Sad - This is for all the shareholders that have lost money due to GM's destruction of Saab. This has mismanagement written all over it as in 2006 Saab was enjoying record sales. GM threw out the innovative and truly energy-saving Saab guts and replaced them with cheaper Opals (also going under, as I understand). Anyone know what actually happened over there? Smells like politics to me. Was the Swedish gov stepping on GM's toes? What a waste what a shame.
I completly agree with Jack. every single sentence. Just want to ask one thing and one thing only. How can the European and US people manage to survive within the next few years? Will US and Europe work mainly on services and Turism? Is that possible?