Saab sells equipment

[rickaren]

Saab sells equipment for old 9-5 models to BAIC

Posted on Friday, December 4th, 2009 at 2:14 PM EST. (Employee News)

Swedish carmaker Saab has sold the production equipment for its old 9-5 models to Beijing Automotive Industry Holding Corp (BAIC), a paper reported, Reuters said.

Sweden’s Ny Teknik newspaper, quoting unnamed sources, said that a deal has already been struck between Saab and China’s No. 10 automaker for the production tools for the old 9-5 sedans. The report, appearing on the newspaper’s Web site on Thursday, said Saab had begun dismantling the production line for the old sedans in October as part of a plan to send the equipment to China and make way for its new 9-5 line due to start production early next year, Reuters said.

BAIC was forced to weigh its options alone after a consortium, led by tiny Swedish luxury car maker Koenigsegg, pulled out of talks to buy Saab, putting in doubt the future of the loss-making General Motors’ unit, the news service said. BAIC wants to boost its international presence and analysts have said it could still bid for some Saab assets on its own but is unlikely to try for the whole company, the story said. (Reuters)