Beijing Auto declared in September that, in order to solve Koenigsegg’s financial issues in the Saab purchase, they are going to buy a minority stake in Sweden’s Kownigsegg Group AB. So General Motors had nothing to worry about, their main bidder had the cash to go through with the deal.
The acquisition had to be completed by the end of October, but problems occurred. The Swedish government said it would have to wait for a decision on guaranteeing a 400 million euro ($600 million) loan granted earlier to Saab. Work on concluding the Saab deal was proceeding "in an orderly manner," as Wang Dazong, Beijing Auto's general manager, told reporters on Tuesday but provided no details.
"Mergers and acquisitions are a vital tool, which we are working on both domestically and overseas," Wang said.
The plan is to extend Saab’s products in China, one of the most important car markets at this moment. Beijing Auto was also involved in the bidding for Opel, another brand owned by General motors, but dropped out of that race in July. It is the fifth largest car manufacturer in China and sold 12,063 cars under its own brand in 2008.
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