9.10China's BAIC joins Koenigsegg's deal to buy Saab

China's BAIC joins Koenigsegg's deal to buy Saab

 

http://autonews.gasgoo.com/auto-news/1012099/China-s-BAIC-joins-Koenigsegg-s
-deal-to-buy-Saab.html

 

Shanghai, September 10 (Gasgoo.com) China's Beijing Automotive Industry
Holdings has signed a deal to become a minority stakeholder in Koenigsegg
Group AB's deal to by Saab Automobile from General Motors Corp, reports
Reuters on Wednesday. 

 

Koenigsegg says in a statement Wednesday that the Chinese automaker has
signed a memorandum of understanding to become "a non-controlling minority
shareholder in Koenigsegg Group." 

 

"This is an important step on the road toward a new Saab. We have a well
prepared business plan, an important partnership and we are ready to proceed
without state financing, " said Koenigsegg Chief Executive Christian when
talkiing of the bid. 

 

"China is the biggest market in the world," von Koenigsegg said. "It is
bigger than the U.S. and Japan together, and given that Saab has no presence
there at all, it should change things rapidly" to enter the market. 

 

GM began to seek a buyer for Saab when the Swedish unit, which has been
unprofitable for most of the two decades since GM owned it, was granted
protection from creditors in February. 

 

GM reached an agreement in June to sell the division to Aengelholm,
Sweden-based Koenigsegg, who has been looking for additional financing to
complete its takeover of Saab. It says the deal with BAIC will be completed
later this year. 

 

Saab sold just 93,295 vehicles worldwide in 2008, 21,383 of them in the
United States. As global demand plummets, the expectations for 2009 are even
direr. 

 

Also on Wednesday, Chinese carmaker Geely Automotive said its parent is
involved in a bid for Ford Motor's Volvo Cars unit, and the bidding may need
help from a state-owned investment firm.

 

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