#BeijingAuto

Chinese automaker Beijing Automotive Group is planning to fast track its global expansion and is looking to buy a US automaker in order to do so.

Beijing Automotive is planning to buy its way into the European automotive market, as the state-owned automaker targets three European manufacturers as potential takeover targets.

Back in 2009, Beijing Auto was able to purchase the rights to several Saab platforms, engines and transmissions. Now that buyout will result in the C70, set to debut at the upcoming Beijing Motor Show.

Alright, so it’s not actually a new Saab per se, but the C70 is one of three Saab-based models that Beijing Auto hopes to launch shortly. Despite having the rights to the Swedish automaker’s platform and some of its drivetrains, Beijing Auto had to come up with a new body for the car. Rumors have us to believe that Italy’s Pininfarina was tasked with the job.

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.

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.

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.

Beijing Auto, the Chinese automaker that has offered to invest in the Koenigsegg-led purchase of Saab from General Motors, has confirmed that in return it will build the current (or previous) generation Saab 9-5 in China. In exchange for its involvement in supporting the deal, Beijing Auto (BAIC) will get all of Saab’s now discontinued 1998-2009 first-generation 9-5 tooling equipment. With the equipment, the Chinese automaker is expected to continue producing the old 9-5 for many years to come.

Saab has secured a $610 million loan from the European Investment Bank after the Swedish government said it would stand behind the loan.

Koenigsegg’s bid to purchase GM’s Swedish Saab brand was contingent on the company securing additional funding, either through external investment or through loans. With the Swedish government not overly excited about bailing out Saab and after rejecting attempts by Volvo to secure assistance, Keonigsegg has looked to the private sector and overseas for an interested party.

Koenigsegg Group AB has now announced it has found just that in Chinese automaker Beijing Automotive Industry Holdings.

The deal has yet to be finalized and no monetary amount has been given, but Koenigsegg did say that Beijing Auto will be a minority non-controlling shareholder.

In return Saab will not only get much-needed funding but also access to the massive Chinese marketplace.

“This is an important step on the road to a new SAAB Automobile. We have a solid business plan, an important partnership and we are now in a position to go ahead without any governmental financing,” said Christian von Koenigsegg, CEO of Koenigsegg Group AB.

Official release after the jump: