Saab signs agreement with China Automobile Trading to re-enter China

2011 Saab 9-4X

Saab Automobile has reached an agreement with China Automobile Trading Co. Ltd. whereby the Swedish manufacturer will once again begin to distribute its cars in the world’s largest auto market. The Chinese market is crucial to Saab’s plan to return to a profitable state and sell 120,000 units globally by 2012.

The company aims to sell between 2,000 and 5,000 cars per year initially, and aims to add Chinese production to increase deliveries to 50,000. “Long-term we have plans to make cars in China,” Saab spokesman Eric Geers said. “First we must get volumes up there, we must have dealers and see demand rise.”

Saab hopes to have the deal finalized in Q1 2011, and will initially have a network of 10 dealers in China. China Automobile Trading Co., a state-owned company founded in 1993, has imported and sold over 100,000 vehicles including those from Volkswagen, Ford, and Chrysler. The last time Saab was in China was 2008 when the company sold 860 cars.

– By: Stephen Calogera

Source: Automotive News