Saab Closer to Chinese Production

It was only a rumor last week but companies involved in the talks recently confirmed that a potential start of production of Saab cars in China is very likely. Still, there are a number of issues to be discussed but it seems like Beijing Automotive, also known as BAIC, might start local production of Saab-branded vehicles in the country, mostly thanks to the deal signed with Koenigsegg Group earlier this month.

"Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience," Saab CEO Jan-Ake Jonsson said at the Frankfurt Auto Show according to gasgoo.com. Saab's CEO also revealed that the Swedish automaker intends to double the number of dealerships in China from 15 to 30.

As said, BAIC earlier this month became a minority shareholder in Koenigsegg Group who will continue to own 100 percent of SAAB.

"This is an important step on the road to a new SAAB Automobile. We have a solid business plan, an important partnership and we are now in a position to go ahead without any governmental financing," said Christian von Koenigsegg, CEO of Koenigsegg Group AB.

Meanwhile, Koenigsegg continues the SAAB taking over process and, according to the latest reports on the matter, the Swedish carmaker doesn't need any other funds from the European Investment Bank.

"Koenigsegg no longer needs any extra loan from the Swedish state but can handle the financing with the help of GM and new investors," a source close to the matter said in the beginning of September. "They have presented us with a plan ... we will look at it from our side and decide how credible it is," State Secretary Joran Hagglund added.