Saab eyes China business following GM sale

Car manufacturer Saab plans to reach an agreement with Beijing Automotive Industry Holding (BAIC) to gain access to the Chinese market following the Swedish firm’s imminent sale by General Motors, Bloomberg reported. Prospective buyer Koenigsegg Automotive said it aims to reach a deal with BAIC within weeks to expand its market inside China. Saab Chief Executive Officer Jan-Aake Jonsson said that while Saab only sold 900 cars in China last year, it hoped to increase sales to 100,000 by 2012. “Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience,” Jonsson said. Koenigsegg, which is leading the purchase of Saab from GM, said it is working through the “final pieces” of a transaction, and expects the deal to be completed by October 31. Saab plans to use Beijing Automotive’s sales network to sell its sedans and station wagons in China. Saab will also share technology with the Chinese manufacturer, which will become a minority shareholder.