Saab Sells Old 9-5 To BAIC According To Reports

Posted on 04. Dec, 2009 by in 2000-2009

Reuters reports that Saab Automobile has now officially sold the old Saab 9-5 to Beijing Automotive Industrial Company (BAIC).

We heard about this back in September, but did not realize that the process would be done before the end of the year.

The question I have now though is that while the old Saab 9-5 sedan is now out of production, what will happen to the old Saab 9-5 wagon as it is supposed to continue production in Sweden until early March.

Saab sells equipment for old 9-5 models to BAIC
Thu Dec 3, 2009 4:31pm EST

STOCKHOLM, Dec 3 (Reuters) – Swedish carmaker Saab has sold the production equipment for its old 9-5 models to Beijing Automotive Industry Holding Corp (BAIC), a paper reported.

Sweden’s Ny Teknik newspaper, quoting unnamed sources, said that a deal has already been struck between Saab and China’s No. 10 automaker for the production tools for the old 9-5 sedans.

The report, appearing on the newspaper’s website on Thursday, said Saab had begun dismantling the production line for the old sedans in October as part of a plan to send the equipment to China and make way for its new 9-5 line due to start production early next year.

“I can’t comment on this one way or another,” Gunilla Gustavs, a Saab spokeswoman, told Reuters.

BAIC was forced to weigh its options alone after a consortium, led by tiny Swedish luxury car maker Koenigsegg, pulled out of talks to buy Saab, putting in doubt the future of the loss-making General Motors’ [GM.UL] unit.

BAIC wants to boost its international presence and analysts have said it could still bid for some Saab assets on its own but is unlikely to try for the whole company.

GM said this week it would consider offers for its Saab brand until the end of the month and move to close the Swedish unit then if it appears that it cannot be sold. [ID:nN01514083]

GM said there had been an outreach from several interested parties in the Saab brand, but declined to name those potential bidders.

Spyker (SPYKR.AS), a small luxury car maker in the Netherlands, said on Wednesday it was talking with GM about buying Saab, but declined to say whether it had submitted a bid. U.S. financier Ira Rennert and his Renco Group have also expressed an interest in pursuing a deal for the Swedish brand. ((Reporting by Mia Shanley; Editing by Leslie Gevirtz; mia.shanley@thomsonreuters.com; +46-8-700 1004))

Tags: , , , , , , , , , ,

No comments.

Leave a Reply



Production Concept