SHANGHAI (Reuters) – China’s Beijing Automotive Industry Holding Corp (BAIC) now expects to issue a statement around 4 p.m. Beijing time (3:00 a.m. EST) on Monday regarding General Motors’ Saab unit, a spokeswoman said, following a news report it had reached a tentative deal to acquire some Saab assets.
Dec. 13 (Bloomberg) — SAIC Motor Corp. may buy Saab Autmobile AB’s assets at a “low price” from General Motors Co., the Beijing-based Economic Observer reported, citing sources close to SAIC it didn’t identify.
The Shanghai-based automaker, China’s largest, may to buy “core assets” of Saab, including the brand and platforms, the newspaper said. GM narrowed its options for the Swedish unit to at most three bidders, people familiar with the matter said Dec. 2. It’s reviewing proposals by Spyker Cars NV and Renco Group Inc., with Renco less likely to win, they said.
The Detroit automaker is still weighing a sale of certain Saab assets to Beijing Automotive Industrial Holding Co., those people said. The Beijing-based company also aims to wait until Saab’s bankruptcy in order to buy some production lines and engine technology at lower prices, today’s report said.
“Chinese automakers are seeking to acquire advanced technology and platforms to enhance their competitiveness,” said Yale Zhang, a Shanghai-based director at auto consulting company CSM Asia.
‘Move Fast’
Beijing Auto plans to “move fast” on Saab and seeks to improve its technology, President Wang Dazong said Nov. 30. China’s passenger-car sales surged 98 percent last month, the most in at least five years, as government incentives spurred demand in an auto market poised to surpass the U.S. this year as the world’s biggest.
Beijing Auto reach tentative agreement to acquire Saab assets including intellectual property for two models and equipment to produce them, the Wall Street Journal reported today, citing a person with direct knowledge of the deal.
Saab will probably win European Commission approval for a 400 million-euro ($590 million) loan regarded as vital to any sale, a Swedish official said on Dec. 10.
Signs appear positive the commission will rule that a Swedish guarantee for the European Investment Bank financing isn’t improper, said Johnny Kjellstroem, a deputy director at the Ministry of Enterprise, Energy and Communication, who is negotiating the case with the European Union’s regulatory arm.
GM said last week it will review bids for Saab and decide the unit’s fate by the end of the month. Calls made today to SAIC spokeswoman Zhu Xiangjun weren’t answered.
To contact the reporter on this story: Yanping Li in Beijing at yli16@bloomberg.net
Last Updated: December 13, 2009 05:09 EST
The Wall Street Journal reported that under the agreement BAIC would take over intellectual property for Saab’s 9-5 and 9-3 sedans and the equipment to make the models. (Reporting by Fang Yan and Jacqueline Wong)
