• Dec 6, 2009
Beijing Automotive Industry Corporation (BAIC) could still be in the game for Saab, having secured a $2.93 billion line of credit from the Bank of China. On the other hand, BAIC could just be gearing up for its own home-grown expansion plans, with an eye on ramping up production and putting financial and technological legs underneath its partnerships with Mercedes and Hyundai.

Or... it could be doing both: trying to buy Saab and as well as remodel its business. The deal for Saab between GM and Koenigsegg was for about $1 billion: the European Investment Bank approved a loan for $615 million, and BAIC provided about $400 million by buying a minority stake in the Koenigsegg Group. If BAIC did its own deal with GM for that same amount -- although we have a feeling they could get a Christmas discount -- that would leave nearly $2 billion for BAIC to take care of Saab and invest in its own operations.

This is, of course, pure speculation -- BAIC could have something else in mind entirely. All we know right now is that they've got a lotta yuan just sitting around waiting to be spent, and aborted plans to build the new 9-5 in China. This Saab story isn't finished yet...

[Source: Reuters]


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  • 27 Comments
      • 5 Years Ago
      @ Autblogist!

      Chinese are not expected to repeat the success of Japanese and Koreans before them.

      Recall that Honda CEO's comment; they are not afraid of Americans and Chinese; they are afraid of only Koreans. Why is Honda CEO saying this? Because he knows what it takes to become like Honda; and he is not seeing Chinese replicating Honda's formula.

      There was a lot of controversy when Toyota's internal analysis put Hyundai as Toyota's no. 1 long term threat around 5 years ago. Toyota's internal prophecy is being fulfilled right now.
      • 5 Years Ago
      china bashing coming in 3, 2, 1....
      • 5 Years Ago
      I'd hate to see Saab go away, given their funky take on things I'll miss them. If China is the only way to save this company then so be it. GM didn't do Saab any favors, hell what can you say about a company that needed a bailout?
        • 5 Years Ago
        @ pickeled

        Chinese aren't interested in saving Saab; they are only interested in Saab's drawings, engineers, and brand.
      • 5 Years Ago
      "that kind of logic makes no sense, companies sell and license their technologies all the time and they don't sell it for 100% of the value of their entire company."

      of course it does when you're paid to be a troll for hyundai who trolls Chinese automotive related threads and and then promotes and defends hyundai on hyundai threads.

      just look at his posting history and the rest of the hyundai trolls, some of them make new names simply to pretend to be other people and troll. its really pathetic.
      • 5 Years Ago
      i think hijacking designs and stealing intellectual property are two DIFFERENT things.
      • 5 Years Ago
      I hope Spyker buys it.
        • 5 Years Ago
        If Spyker buys it Saab is history, Spyker is hand built car manufacturer and has no experiance in managing something as large as the Saab brand and its factories. Spyker's sales are barely even over 30 mill where as SAIC is 3rd largest car company in worlds biggest car market.
      • 5 Years Ago
      BAIC and Saab? I don't know if that is good or bad. But i hope it won't happen.
        • 5 Years Ago
        "financial and technological legs underneath its partnerships with Mercedes and Hyundai..."

        THE most overrated and underrated major car company in the World in terms of reputation... Yet both very technologically advanced and well off companies... lawls =)
        • 5 Years Ago
        Saab has been a money loser for years and years. If there was ever a case for letting a niche brand die a graceful death, this is it.
      • 5 Years Ago
      If whoever can pay for it? i don't see why not? At least it's better to carry it as a burden and it might help GM financially to turn over the current Bankruptcy situation.
      • 5 Years Ago
      I was just at the NE auto show in Boston and Saab had by far the best display (but not product), which surprised me given their 'troubles'
      • 5 Years Ago
      "china bashing coming in 3, 2, 1...."

      95% of who are hyundai trolls
      • 5 Years Ago
      the fact that hyundai employs dumb sh!ts like you really makes me frown upon them. in fact I find myself unable to consider purchasing a car from a company that employs racist schmucks like you.

      what's worse is how you believe qoreans to be superior of everyone yet south qorea is completely subservient to the US and has been since the qorean war.

      what's just as pathetic is how you seem to completely ignore how much of qorea's heritage is owed to China, but for some reason think yourself superior. did you forget how long qorea used China's written language before it finally come up with its own? or do you only prefer to believe in your own delusional revisionist history? how many contributions has qorea made to civilization in general?

      seriously though, what is it with you and your grudge against the Chinese? like you said to someone else, Chinese guy steal your girl or something?
      • 5 Years Ago
      @ anonymous j

      > how is it stealing when you pay for it?

      1. When Chinese buyer owns like only 51% of the company. Then you are stealing from remaining 49% of non-Chinese shareholders.
      2. When intellectual property is not part of transaction, but Chinese decides to use the IP anyway, like SAIC's MG5.

      Like you say, it's not a theft when Chinese pays for something. What usually happens is that Chinese buyer take more than what they paid for.

      It's like taking towels from a hotel room; you paid for the use of room, not for the towel.
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