LeftLaneNews

GM sells Saab technology to China's BAIC; still seeking full suitor

General Motors announced this morning that it has entered into an agreement with Beijing Automotive Industry Holding Corporation over the sale of certain technology from Saab's current 9-3 and outgoing 9-5 models. The deal will net GM an unspecified amount of money but still leaves the window open for a full sale of Saab Automobile, including the company's Swedish factory and upcoming 9-5 and 9-4x models.

GM said in a statement that Saab will help BAIC integrate certain technologies into the Chinese automaker's future products. It is unclear just what technologies will be included, although both the current 9-3 and now out of production 9-5 are some of GM's oldest offerings. Earlier this year, BAIC bought the tooling for the 9-5 after production ended in Sweden in anticipation of an all-new model.

Jan Ã...ke Jonsson, Managing Director of Saab Automobile said in a statement," "This arrangement is excellent for both parties, now and for the future. We have developed a good relationship with BAIC and look forward to working with them to integrate this Saab technology into their future vehicles."

The acquisition of Saab's old technology will finally allow BAIC to produce its own line of vehicles. It currently serves as a partner for a number of foreign automakers that build cars in China and it was a financial backer in Koenigsegg's failed deal to acquire the brand.

A source close to the deal told Reuters that GM was in serious talks with an unnamed separate party over a full sale of Saab's assets. That party is believed to be either Dutch supercar manufacturer Spyker, although rumors have circulated in Swedish press that a domestic firm has been in touch with Deutsche Bank, the firm that is assisting GM with the Saab sale. An announcement of a full buyer for Saab's assets is expected later this week, if not by the end of December.