Beijing Automotive Industry Holding Reaches Deal To Produce Saab Vehicles
Beijing Automotive Industry Holding has struck a tentative agreement to produce several models of Saab vehicles. Beijing Automotive will be allowed to make older versions of the Saab 9-3 and 9-5 in China. Beijing Automotive will not be allowed to prevent any separate deal that General Motors decides to make for Saab.
However the employment possibilities of 3,500 workers in Sweden is still a big question mark. GM was close to selling Saab to Koenigsegg last month but the deal fell through. Beijing Automotive’s deal with Saab “would be good for Sweden, good for China and good for Saab,” according to a Saab spokesperson.
GM is still negotiating with other Saab buyers such as Renco and Spyker Cars. GM bought a majority of Saab for $600 million in 1990. Then bought the rest of the company for $125 million in 2000.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry