GM in talks to sell old Saab technology
December 13, 2009
Source: GM in talks to sell old Saab technology
STOCKHOLM — General Motors Co. is in talks to sell parts of Saab Automobile’s old technology to a Chinese company and the entire brand to another buyer, a person familiar with the negotiations said Sunday.
The person said GM plans to sell the technology behind the Saab models 93 and 95 to Beijing Automotive Industry Holdings. The person spoke on condition of anonymity because they were not authorized to speak about the deals.
The person said the sale of the old technology to Beijing Automotive Industry Holdings will help GM financially but won’t stand in the way of a deal to sell the entire Saab brand and its current production to another buyer. Negotiations for such a deal are also taking place, the source said, but declined to say with whom.
General Motors earlier this month said it will phase out the Saab brand if it doesn’t find a buyer for the brand before the end of December. About 4,500 jobs at Saab are at stake.
However, GM said new potential buyers had emerged after Sweden’s Koenigsegg Automotive AB dropped out of a deal to buy the company in November.
Beijing Automotive Industry Holdings was originally part of the Koenigsegg team and said it would re-evaluate Saab after that deal fell through. The Chinese company didn’t return calls seeking comment Sunday.
Private equity firm The Renco Group Inc. and investor group Merbanco Inc. are reportedly also interested in Saab.