Ka-Ching! BAIC Has The Funds To Buy Saab
China’s BAIC has received a $2.93 billion line of credit from the Bank of China, says Reuters.
The question of course is: What for?
BAIC, the car company owned by the city of Beijing, has said before it might still be interested in buying Saab from GM. When questioned again, BAIC declined to comment.
The money “is more than enough for production expansion,” said Li Chunbo, an analyst with CITIC Securities. Expand for what? BAIC doesn’t even have its own brand and relies on joint ventures with Hyundai and Mercedes. Of course, the suspicion is Saab again.
If that won’t materialize, BAIC certainly will be able to put the money to good use. It’s a line of credit after all. Nobody says it MUST be drawn on.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Think SaabsUnited reported that BIAC has just purchased all the tooling for the prior generation 9-5. That certainly takes up some of that line of credit, but not much, I'd think. Wonder what they'll use the rest for...
Common Bertel, you couldn't find a sexy Asian bank teller to put as the lead picture? I'd fix it for you but my employer's internet is more strictly blocked than yours in China is.
Ok, with all the tea in China and free enterprise going along with it the only suitor for SAAB is city of Bejing? So, is it just the Bejing Commies (probably the most important once) will own SAAB (along with BAIC) or they share it along other region of commie land? Bertel?