Beijing Automotive obtains $2.9 billion credit – funds to take over Saab?

saab-9-5

Beijing Automotive Industry Holding Corp (BAIC) has obtained a 20 billion yuan (US$ 2.93 billion) line of credit from the Bank of China, believed to be the funds needed to buy over Swedish automaker Saab from current owner GM, according to Reuters.

BAIC declined to comment on this latest development but said that it might still be interested in buying Saab, after a consortium led by Swede supercar maker Koenigsegg, of which BAIC was a part of, pulled out of talks with GM. The ailing American giant has said that it will wind down Saab’s operations if a suitable buyer is not found by the end of December, so BAIC could be the marque’s much-needed saviour.

The Beijing based company, which recently launched a self-made electric car, is seeking to compete with more successful local rivals such as Shanghai Automotive (SAIC), which has winning partnerships with China’s market leaders GM and Volkswagen. BAIC has tie ups with Daimler and Hyundai, but is looking to boost production figures and car making capability by having Saab on board. The company’s first step was to buy over production equipment of the previous generation Saab 9-5 – production of the ‘new’ car will start early next year.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Lady Gaga on Dec 08, 2009 at 1:00 am

    I would rather take a ride on a Disco Stick!

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  • Great to hear that! hope they could bring this model into malaysia from china..

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  • h3faysoy on Dec 08, 2009 at 1:06 am

    this is a disaster of malaysia proton.

    I think proton should but volvo, saab than Chinese.

    btw, I really hope volvo don't go to China.

    Like or Dislike: Thumb up 0 Thumb down 0
  • initial R on Dec 08, 2009 at 1:11 am

    as expected……..

    Like or Dislike: Thumb up 0 Thumb down 0
  • vnoz said,

    December 7, 2009 @ 5:00 pm

    'Great to hear that! hope they could bring this model into malaysia from china..'

    With an electric motor ?

    SAAB is currently using GM engines. Surely the engines are not included in the deal.

    I don't think that GM will supply engines to a competitor…

    Like or Dislike: Thumb up 0 Thumb down 0
  • common sensor on Dec 08, 2009 at 2:16 am

    It will be re-branded to HAM-SAAB ..

    Like or Dislike: Thumb up 0 Thumb down 0
  • initial R on Dec 08, 2009 at 2:21 am

    common sensor said,

    December 7, 2009 @ 6:16 pm

    It will be re-branded to HAM-SAAB ..

    ———————————

    Hahahaha………

    Like or Dislike: Thumb up 0 Thumb down 0
  • seancorr on Dec 08, 2009 at 2:22 am

    Soon everything will be 'owned and made in China' – China for everyone!

    Like or Dislike: Thumb up 0 Thumb down 0
  • I dont believe in accquiring, somehow these so called 'merge' will be a bad business deal in the future. Look at AOL and Time Warner, look at Google and all the smaller company it bought, and many more. Somehow the parent company will neglect them. It would be better to build the required technology, patience and speed is the key.

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  • bmpower on Dec 08, 2009 at 4:31 am

    if proton acquire saab with usd$2.9 billion = +-RM10B.

    then proton mati la kena hantam.

    just like they always said : "Rakyat money again! "(with nonesense emotion). even thought, many of them not even entitled to taxed income. B)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Littlefire on Dec 08, 2009 at 4:44 am

    I think the next time, our beloved P1 maybe even eaten alive by China cars… Just look at them, they are bold to make decision to help them improve fast… Such like buying car companies which made cars + engine technologies + safety technologies..

    If Volvo bought over by Geely, i will not be surprise that a few years from now they will have 5-star EURONCAP Geely cars… While Our P1 still claim they have 4-star which haven been proven by EURONCAP…

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  • Mazda 3 MPS on Dec 08, 2009 at 5:39 am

    screw china

    Like or Dislike: Thumb up 0 Thumb down 0
  • Littlefire on Dec 08, 2009 at 5:44 am

    If Proton bought Volvo, i would say a good choice. As their famous for safety & 5 cylinder + turbo engine… I would rather see our People saved more life compare losing more in accident while driving P1 car + volvo safety technology…

    I will support 100% if the deal is good for the people. But not for a few pockets..

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  • squawk on Dec 08, 2009 at 6:35 am

    Aiyooo…. China's gonna buy everything that's up for sale. What's left for the Koreans? :-)

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  • damn, wonder how long it will take to pay back those loans.

    still, salvaging the tech is a good idea since saab is not exactly a lousy car maker either. they have good design and good tech. install them in china cars, best of both worlds, nice tech at a cheap price.

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  • h3faysoy on Dec 08, 2009 at 7:52 am

    If China buy volvo and saab, There is NO chance for proton!!

    If malaysia goverment really want competitive auto industry, please buy volvo!!!

    volvo is 10000 times more important than lotus.

    Like or Dislike: Thumb up 0 Thumb down 0
  • h3faysoy on Dec 08, 2009 at 7:53 am

    Warning :

    Malaysia auto industry will destoryed by Chinese soon.

    Like or Dislike: Thumb up 0 Thumb down 0
  • ??po ton on Dec 08, 2009 at 9:43 am

    Malaysia auto industry has been ruined by yourself. I dont believe Chinese domestic automakers would consider Proton to be a formidable competitor whatsoever, instead Proton is just a steaming piece of monkey shit spoiled by Malay government. Look at the Eurostar(proton)'s performance in China, people have found Eurostar is just like a rare jewel that you never get to meet on the street, and it's priced as high as Focus, Golf, Callora, etc. What a horrible price, to say nothing of the quality unable to be placed in the same league with Focus, Golf etc.

    Also, Chinese domestic automakers totally dont need to take over Saab/Volvo to compete with Proton, LOL. Chery for example has sold more than 500,000 cars in Chinese market as of October this year, a 90% growth year on year, so is Geely. BYD sold more than 60,000 cars last month. Hence, in mainland China auto market (one of the most fierce competitive market), Chinese domestic automakers has taken up 30% or more market share collectively, every 10% percent means 1.2 million cars.

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  • ??po ton on Dec 08, 2009 at 10:04 am

    Yes, as you would guess, I'm a Chinese living in China. since 2007, I occasionally visited this site for the information about Malay auto industry. To my disappointment, during this 3 year proton just launched a new model namely its first SUV. What a slow motion, you guys are really not good at development but mocking others.

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  • ??po ton on Dec 08, 2009 at 10:05 am

    type, i meant proton's first MPV

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  • ??po ton on Dec 08, 2009 at 10:13 am

    And a kind advice, learn how to copy or reverse engineer if you dont know how to develop by yourself.

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  • Ford_GT on Dec 08, 2009 at 6:01 pm

    I can sense China captalism in da making….who care bout Commies anyway ?

    bmpower point make sense to me, I don't think Proton have enough suff.funds to purchase Saab for long term huge investment.

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  • barca on Dec 08, 2009 at 6:44 pm

    ??po ton said,

    December 8, 2009 @ 2:04 am

    Yes, as you would guess, I’m a Chinese living in China. since 2007, I occasionally visited this site for the information about Malay auto industry. To my disappointment, during this 3 year proton just launched a new model namely its first SUV. What a slow motion, you guys are really not good at development but mocking others.

    ————————————

    to your disappointment? what, do you have some shares in proton or something?

    even peugeot has yet to sell its FIRST MPV, the 5008 and you think proton is slow?

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  • barca on Dec 08, 2009 at 6:50 pm

    and uh, there goes a good brand to be cannabalized by BAIC should the deal fell through.

    RIP Saab. You will not be the same anymore and we will miss you. :(

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  • ??po ton on Dec 08, 2009 at 8:36 pm

    barca said,

    to your disappointment? what, do you have some shares in proton or something?

    even peugeot has yet to sell its FIRST MPV, the 5008 and you think proton is slow?

    ^ Yes you have a point, but how about Citroen? it has launched its MPV models for many years. C3, C4, C8, etc.

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  • squawk on Dec 08, 2009 at 11:06 pm

    Barca, Peugeot had the 806 MPV in the 90s. It's a JV between PSA (Evasion, 806) & Fiat (Ulysse).

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  • barca on Dec 08, 2009 at 11:36 pm

    ??po ton said,

    December 8, 2009 @ 12:36 pm

    ^ Yes you have a point, but how about Citroen? it has launched its MPV models for many years. C3, C4, C8, etc.

    at least there's an MPV in proton's current offering considering that proton is a young manufacturer.

    squawk said,

    December 8, 2009 @ 3:06 pm

    Barca, Peugeot had the 806 MPV in the 90s. It’s a JV between PSA (Evasion, 806) & Fiat (Ulysse).

    squawk, thanks for the headsup. i was actually referring to current offerings by proton and peugeot with respect to almost similar specifications by the two manufacturers.

    proton can't do a 806-type MPV yet. :)

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  • squawk on Dec 09, 2009 at 12:06 am

    I sat in 1st gen Ulysse before. Very comfortable and spacious. Better than Estima from same period.

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  • ??po ton on Dec 09, 2009 at 12:50 pm

    barca said,

    December 8, 2009 @ 3:36 pm

    ??po ton said,

    December 8, 2009 @ 12:36 pm

    ^ Yes you have a point, but how about Citroen? it has launched its MPV models for many years. C3, C4, C8, etc.

    at least there’s an MPV in proton’s current offering considering that proton is a young manufacturer.

    ——

    You seem to miss the point, it doesn't matter whether it's MPV or not, the thing is Proton just put on new model on the market within at least 3 years, only one model. It's in fact as slow as a snail

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  • barca on Dec 09, 2009 at 9:00 pm

    ??po ton said,

    December 9, 2009 @ 4:50 am

    barca said,

    December 8, 2009 @ 3:36 pm

    ??po ton said,

    December 8, 2009 @ 12:36 pm

    ^ Yes you have a point, but how about Citroen? it has launched its MPV models for many years. C3, C4, C8, etc.

    at least there’s an MPV in proton’s current offering considering that proton is a young manufacturer.

    ——

    You seem to miss the point, it doesn’t matter whether it’s MPV or not, the thing is Proton just put on new model on the market within at least 3 years, only one model. It’s in fact as slow as a snail

    ———

    well, you know what, i take it that you have been following proton….that's how things are done in proton. :)

    *shrugs*

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