Seemingly every year for much of the past decade, one or more of the ambitious Chinese automakers has paid cash for a spot at Detroit’s North American International Auto Show, promising to soon have a product ready for the U.S. market. This past January, BYD outlined plans to open up a limited distribution network with dealers that would sell not only cars but solar generators and high-efficiency light bulbs.
So far, none of the brands has made the jump across the Pacific, whether due to quality, safety, pricing or other concerns. In fact, one of the biggest challenges for an automotive wannabe is simply setting up an American distribution network. So, tying up with an established brand could be the critical step needed for a maker, say Hawtai Automotive Group, that doesn’t want to wait any longer.
And Hawtai may have just bought into one of those established brands, having spent 120 million Euros to acquire a 29.9% stake in cash-starved Saab, (while also offering the Swedish maker another 30 million Euro loan).
One of the reasons Saab Chairman Victor Muller agreed to the deal was to gain access to the booming Chinese market. But Hawtai, it seems, sees Saab as a way to get into the U.S., according to a report in the trade journal, Automotive News.
Muller said Saab could start distributing a Chinese-made product that would be priced as low as $10,000, and which could start showing up in the States within two to three years.
“We laughed when the Japanese came,” the executive said. “We laughed when the Koreans came. But we will not be laughing when the Chinese come. The Chinese are like a steamroller.”
While Hawtai would be the most likely partner, Muller seemed to leave open the door to other Chinese partners. He separately told TheDetroitBureau.com that while negotiating the sale of the 29.9% stake in Saab he was talking “simultaneously” with three different Chinese makers, including Hawtai.
(Chinese deal will allow Saab to restart its idled Trollhattan plant. Click Here for more.)
In fact, Muller told Automotive News, he would be open to talking to any of the more than 100 domestic Chinese makers, and would do a deal with “the one with a strategy” for making a go in the U.S.
While Saab would assist in lining up a distribution network, Muller stressed that the new products would be sold under the Chinese maker’s name and not distributed as Saabs.
The Swedish maker is considering the possibility of producing new products specifically for the Chinese market, Muller told TheDetroitBureau.com during a preview in Washington, this week. The most likely would be a large SUV. Saab is also looking to find a partner to help it develop a small car to be called the 9-2, though that might involve a European, American or Japanese alliance, as well.