BAIC to Begin Saab Production, Plans 300,000/Year

Chinese manufacturer BAIC is determined to make the $200 million it paid last year for the platforms it has bought last year from GM worth every penny, as it is gearing up to start production of vehicles based on the respective technologies.

According to Autonews, the carmaker announced it is currently building a facility to accommodate production of future Saab-based vehicles. The annual capacity of the facility is expected to be around 300,000 units a year.

Late last year, when Saab's fate was still in the balance, BAIC purchased from GM rights to three vehicle platforms, two engine technologies and two transmission systems. The technologies sold to BAIC refer to Saab 9-3 and 9-5 models, as well as tooling.

In addition to using these technologies in building a new line of vehicles, the Chinese also plan to integrate the Saab know-how into what it currently manufacturers. The start of production of models based on the old Saab's is expected to take place next year.

The production plan calls for Saab engineers to assist BAIC in its efforts to create its own model.

"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," Jan Ake Jonsson, Managing Director of Saab Automobile said back in December 2009, when the decision to shed old technologies was made.