Options to be reassessed by BAIC after failure of Saab bid
Wednesday, China's Beijing Automotive Industry Holding (BAIC) confirmed that following a plan to purchase Swedish carmaker Saab failed, it is mulling to "reassess" its options. The company did not reveal its plans.
It was forwarded by Swedish luxury carmaker Koenigsegg on Tuesday that because of the costly delays, it was aborting plans to join forces with BAIC to buy Saab from its US parent General Motors.
A statement by BAIC claimed, "It has always been an important strategy of BAIC to go international. Given the pullout of Koenigsegg, we will reassess this project in a prudent manner and make proper arrangements."
The statement provided with no further indication of its plans.
Koenigsegg had required a 600-million-dollar loan from the European Investment Bank. It wanted the Swedish government to act as a guarantor, but the request was denied.
In June, Koenigsegg declared its plan to acquire Saab. Originally, the deal was hoped to be completed by the end of October but was repeatedly delayed.
BAIC which already has joint ventures with Daimler and South Korea's Hyundai, was founded in 1958 and is China's fifth-largest automaker.
BAIC also tried its luck to acquire Opel, another European unit of GM. Unfortunately; it declared in July that it was unsuccessful in reaching an agreement with the US Company because of intellectual property rights concerns.
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