By on November 25, 2009

Cautious evaluation. Picture courtesy asset-cache.net

China’s BAIC said ”it will cautiously evaluate the situation regarding the sale of General Motors Co.’s Saab Automobile unit after Swedish sportscar maker Koenigsegg Group AB backed out of a deal to buy Saab,” the Wall Street Journal reports.

BAIC wanted to take a minority stake in Koenigsegg, to help the boutique carmaker buy Saab. There were suspicions that Koenigsegg was not more than a straw man that made a Chinese takeover of Saab more palatable, but those suspicions have now evaporated.

International development “has always been an important strategic goal for Beijing Auto,” BAIC said in a statement. “In light of Koenigsegg’s withdrawal, we will cautiously re-evaluate the situation and make appropriate plans.”

In Chinese, that sounds like a “no.” Or at best like a “come back with a better offer.”

Business Week, always a bit removed from reality, calls the abandoned deal “a setback for China’s auto industry’s global ambitions.” Oh Lord.

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2 Comments on “BAIC „Cautious“ About Saab...”


  • avatar
    Stingray

    Somehow I still don’t like the idea of Saab going away.
    But seems I’ll have to get used.

  • avatar
    Stu Sidoti

    GM can wind down Saab and spend tens, maybe hundreds of million doing that or they can sell it for tens of millions and make a little cash…or they can sell Saab and use that money for R&D, reviving  Saturn or Pontiac or…put that money in cash-on-hand. Either way, for GM to wind it down now is a lose-lose….selling it to someone for even a discounted price is at least a lose-win.
    Personally, I’d would miss Saab and even Volvo if they went away but if the market for their somewhat unique vehicles just isn’t there, it just isn’t there.

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