Report: GM talking to BAIC on partial sale of Saab, liquidation likely

The issue of Saab’s sale just got a little hotter. According to sources who spoke with Reuters, General Motors is now talking to Beijing Automotive Industry Holding Group (BAIC) about a partial sale of assets associated with Saab including tooling and technology.

BAIC has made it clear that it has no plans on acquiring Saab’s production hub in Trollhattan, Sweden and is looking to set up production in China based on older generation of Saab vehicles including the 9-5 and 9-3 models.

A partial sale of Saab to BAIC would mean an inevitable liquidation of other assets held by the brand and the loss of more than 3,000 jobs in Sweden.

Dutch supercar maker Spyker Cars NV announced last week that it has expressed interest in purchasing Saab and maintaining the brand. Spyker is backed by a Russian bank, a majority shareholder in the Dutch company.

GM has said that it will “evaluate potential bids between now and the end of December.” It said that if it does not find a suitable arrangement for Saab in that time, “it will begin an orderly wind down of the global Saab business.”

– By: Omar Rana

Source: Reuters