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Chinese Government Backs Saab Sale

Beijing Automotive Industry Holdings partners with Koenigsegg.

by on Sep.09, 2009

Quirky Saab styling should fit right in at Beijing Automotive.

Quirky Saab styling should fit right in at BAIC.

Koenigsegg Group AB, the ultra small Swedish sports car maker for the ultra rich, said this morning that Beijing Automotive Industry Holdings Company Ltd would become a partner as it buys Saab from General Motors Company. The new financing announced today was first revealed yesterday by

BAIC, which is controlled by the Chinese Government, will become a minority owner in Koenigsegg Group when the deal is finalized by the end of the year.

The sales still requires that Saab obtain about $580 million in loans from the European Investment Bank and loan guarantees from the Swedish government. The Swedish government confirmed yesterday that it had received the new Saab proposal. It is now studying whether to provide the necessary loan guarantee. It would not comment further. EIB will rule on the loan late in October.

At the core of the matter is whether Saab can become viable under the undisclosed business plan. BAIC would give Saab access to China, the world’s largest auto market.