Saab announced today it has signed a Memorandum of Understanding with China Automobile Trading Co (CATC) which calls for the Chinese party to import both cars and parts sourced from Saab. The financial aspects of the deal have not been revealed.
CATC will become the official service provider to Saab China, a company which will be established in the near future. The final contract between the two sides will be signed in the first quarter of 2011, while sales are expected to begin in July the same year.
"This agreement is vital, as it will be the foundation to develop a stronger presence in what is now the largest car market in the world," said Saab CEO Jan Ake Jonsson.
"Saab sees strong sales potential in China and we are confident our product offering will be attractive to both existing and new customers in the market. We look forward to re-establishing the brand in China next year with new products like the new 9-5 sedan and the 9-4X crossover vehicle."
The products to be brought onto the Chinese market will be sold through a dealership network which will initially comprise only 10 stores. In the long run, Saab China will take over the responsibilities and logistics of Shanghai GM, who has been until now responsible with distribution and after sales responsibilities of the Saab brand on the local market.
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