Saab Planning Chinese Car Production

Swedish carmaker Saab is planning to move a part of its car production in China, a country that could allow the company to reduce labor costs and seek new buyers in the region. Saab CEO Jan-Aake Jonsson said that the automaker is looking for a way to double the count of Chinese dealership from 15 to 30 but, before starting production of cars in China, the company must increase sales or at least, wait for the first recovery signs.

One of the ways to start production in China is to use Beijing Automotive as a local partner, as the Chinese carmaker recently confirmed that it will take control of a minority stake in Koenigsegg Group.

"Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience," Jonsson said according to a report by gasgoo.com.

Details on the models that could be manufactured in China are yet to be revealed but Saab has already revealed that it intends to develop several small cars, following the introduction of the new 9-5 at the Frankfurt Auto Show.

"Downsizing is definitely on the agenda but we also need to produce safe and environmentally-friendly cars. We have a good starting point," said director of vehicle engineering Mats Fagerhag. "I have 900 engineers in Sweden and I have all the capabilities and knowledge that I need to continue to develop models," he said. "GM was all about volume and that dictated the decision making. What we can do with Saab now is to focus on premium rather than price and volume."