Beijing Automotive puts tab for Saab technology at $200 million

ERJ staff report (AN)

Beijing / Hong Kong (Reuters) -- Beijing Automotive Industry Holding Corp said it paid $200 million for Saab technology, allowing the Chinese automaker to roll out Saab-based cars as soon as 2011.

The intellectual property bought by BAIC, China's fifth-largest automaker, includes the rights to three overall vehicle platforms, two engine technologies and two transmission systems, BAIC said in a statement ahead of a news conference on Wednesday.

BAIC, which hastily arranged the purchase after a group led by Swedish sports car maker Koenigsegg pulled out from a deal to buy all of Saab from General Motors Co., plans to immediately start integrating the Saab technology into its vehicles.

"The overseas technology takeover by BAIC is not only targeted at simple technology, such as manufacturing blueprints, but also the management systems that will enable BAIC to continuously develop and produce high quality vehicles," the company said in the statement.

BAIC, which had been a part of a bid by Sweden's Koenigsegg group for Saab, expects commercial production for Saab-based cars to begin as soon as 2011.

The acquisition includes the intellectual property for Saab's 9-5 and 9-3 sedans and some equipment to make them, leaving the fate of Saab itself up in the air.

Dutch sports car maker Spyker Cars NV was in talks to buy Saab before negotiations broke down last week. GM then said it would close down the Swedish automaker after 20 years of control.

Russia-backed Spyker came back Sunday and said it was still interested in pressing ahead with a deal for Saab, fanning the Swedish carmaker's faint hopes for an 11th -hour reprieve.

From Automotive News (A Crain publication)