Beiqi takes over Saab models but Saab to close?

Beiqi: He finally grabbed the Saab

Although the meeting failed to complete the acquisition of Saab Beiqi feat, but the birth of their own, paving the way models.

Beijing Automotive (Beijing Automotive Industry Holding Co., Ltd.) has finally moved by the tireless General Motors Corporation and Swedes.

"the press release said that Beijing Automotive Holdings has completed the Swedish company Saab Automobile related to the acquisition of intellectual property, including cash Saab 9-5,9-3 other three vehicle platforms and two series of turbo-charged engine, gearbox manufacturing technology ownership and some molds. Beiqi refused to disclose the name of another vehicle platform.

This is a Chinese auto company to complete the year's second tranche of automotive vehicle asset acquisitions. Another pile of wide public concern prior to the transaction, Sichuan, China Heavy Machinery Co., Ltd. Tang for about 150 million U.S. dollars of the price of the acquisition of GM's Hummer brand and its patent-use rights. Another Chinese car manufacturer Geely Group, has been selected as Ford's luxury car brand Volvo (VOLVO) preferred acquirer, the two sides have not yet signed a definitive purchase agreement.

This acquisition of foreign assets of the company car to get the vehicle production platforms and technology practice in China is not new. Prior to SAIC (and subsequently its acquisition of Nanjing Auto) will be through the acquisition of the bankrupt British car company MG Rover's assets and technology, China has launched two brand Roewe and MG 4 models.

However, for this small achievement Beiqi have to wait too long.

Now, Beiqi can make use of the acquisition of Saab cars from platform to realize their dream of self-repairer - though not the Beiqi access to the latest technology and manufacturing platform (the forthcoming new generation of cash Saab 9-5,9-3 ), but the two platforms, produced a car was Saab's best-selling models, platform technology and engine technology is more mature.

Beijing Automotive's spokesman said the use of Saab Saab will support the R & D manufacturing Beiqi own brand models.

If you from 25 years ago with the United States Motor Company co-production Jeep sport utility vehicle counting, Beijing Automotive is the first auto companies with foreign auto companies in China, but the company has caught its own technical bottlenecks, the delay in launching its own brands. Its main rival SAIC, FAW Group and Dongfeng Motor Group has launched its own are own-brand Roewe (and MG), Pentium, and Aeolus, and have achieved good sales. The newly acquired assets in the Air Automobile Changan Auto also introduced Ben Ben, Yuet Cheung own brand models and several models.

Therefore, the Beijing Automotive has been pinning his hopes on the acquisition of a shock level to narrow the gap with competitors. However, the company's experience overseas acquisition does not match its ambitions. Earlier this year, Beiqi tried to bid for GM's Opel brand to another, but lost the bid to parts suppliers Magna-led consortium, the last sale of GM's Opel to give up the idea of .

Opel Beiqi the acquisition will be targeted after the failure of successive years of losses in the luxury car maker Saab body. As originally heard the news, Beiqi had tried to buy the entire Saab brand and assets, in the attempt failed after the local sports car manufacturer with the Swedish commercial Ni Saike (Koenigsegg Automotive) acquisition of an alliance, but the unexpected announcement by the end of November Koenigsegg withdraw from the purchase, so that the curve of M & A Beiqi dreams dashed once.

The talks will ultimately do not appear unexpected, a large reason is that the performance of Beiqi and General Motors have been extremely efficient, just over two weeks time to finish all the details of the transaction. In addition, although the two sides have not yet announced the amount involved in the transaction, but Beiqi certainly not short of money. 10 days ago, the Beijing Automotive has just announced a partnership with the Bank of China to reach a value of 20 billion yuan (about 2.93 billion U.S. dollars) a "comprehensive strategic cooperation agreement."

When will hanging in the streets to see the Saab logo descent Beiqi new models, depending on the Beiqi the ability to absorb imported technology platform - taking into account the experience of Beiqi poor before, you may still give it a little time off.

Beiqi certainly not short of money

patpending wrote:Looks like SAAB is the new MG Rover, except more like the new Rover:

Beiqi is buying the existing kit like NAC did, but no-one is buying the ongoing SAAB brand IP or the factory...

BAIC to make Saab design-based cars as soon as 2011

* BAIC to immediately start integrating Saab designs

* First vehicles using Saab IP available as soon as 2011

* Exploring other opportunities, including green vehicles


BEIJING, Dec 18 (Reuters) - BAIC said on Friday it will immediately start integrating its newly acquired technology from GM's [GM.UL] Saab unit into its vehicles, with commercial production for Saab-based cars to begin as soon as 2011.

Beijing Automotive Industry Holding Co (BAIC), China's fifth-biggest automaker, recently acquired the rights to three vehicle platforms from Saab for an undisclosed sum.

The hastily arranged purchase was put together in just two weeks, after a larger deal unravelled that would have seen a group led by Swedish sportscar maker Koenigsegg buy all of Saab. BAIC had been a part of that group.

"We will start integrating right away," Gu Lei, president of BAIC's technology centre, told reporters at a news conference. He added that commercial production for vehicles with the newly acquired technology could start as soon as mid-2011.

BAIC President Wang Dazong said his company and Saab are also exploring other opportunities involving other technologies such as "new energy" vehicles.

"We need to have our own brand cars, and we need to grow our competency," he said. "We need to become a global company."

BAIC said on Monday it will buy the intellectual property of Saab and some equipment to make them for an undisclosed sum, as part of a push to develop its own-brand cars. [IDTOE5BD08F]

That sale came after another Chinese company, Sichuan Tengzhong Heavy Industry, bought GM's loss-making Hummer unit as the U.S. auto giant restructures.

Wang would not disclose the transaction amount for BAIC's purchase of the Saab designs. But a Swedish daily Dagens Industri put the number at 1.4 billion crowns ($197 million), citing a source who was involved in the process.

China surpassed the United States this year to become the world's largest auto market, as sales soared after Beijing rolled out a series of incentives designed to stimulate consumer spending during the global downturn.

The company's production partners in China include Daimler (DAIGn.DE) and Hyundai Motor (005380.KS), with most of their joint output for sale in the domestic market.

Wang said BAIC's exports are still relatively small, at about 50,000 vehicles this year. He added it is still too early to say if vehicles produced using the Saab designs could be used for export.

"We need time to develop more plans, integrating the technology into our vehicles," he said. "Those plans are in the works."

Most Chinese automakers are either churning out foreign brand cars in tie-ups with global heavyweights such as Volkswagen AG (VOWG.DE) and Toyota Motor (7203.T) or focused on the lower end, making cars as cheap as 30,000 yuan ($4,394).

But as wealth grows in what has now become the world's biggest auto market, many Chinese carmakers are looking to boost their profile.

The Chinese government is envisioning that half of passenger cars sold in the country to be self-developed by 2015, according to a media report earlier this week, citing government guidelines, which are expected to be released in the first half of 2010. [IDTOE5BF05R]

State-run BAIC is joining Geely Automobile Group (0175.HK) and other fast-growing Chinese auto firms in chasing Western brands to take advantage of a steep global industry downturn.

BAIC has made clear it has no interest in acquiring Saab's production hub in Trollhattan.

BAIC has made clear it has no interest in acquiring Saab's production hub in Trollhattan.

Svenska Aeroplan AB (aktiebolag)" (Swedish for "Swedish Aeroplane Limited") (SAAB) was founded in 1937 in Trollhättan

Cowley W wrote:BAIC has purchased the tooling to the older model SAAB 9-3 and 9-5 as well as two older SAAB engines (SAAB currently uses GM Eco Tech engines). Had GM been able to sell SAAB there were new designs for a 9-3 and 9-5 all ready to go.

patpending wrote:I'm just wondering what the effect will be on that region of Sweden when the Trollhattan factory closes.