BAIC may bid for select Saab assets, analysts say
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(China Daily/Agencies) Updated: 2009-11-26 07:58
China's BAIC, part of a group that abandoned its bid to buy General Motors' Saab unit, could still bid for some Saab assets on its own but is unlikely to try for the whole company, analysts said.
Beijing Automotive Industry Holding Corp (BAIC) must decide its next move after its 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 GM unit.
BAIC said yesterday it was reviewing its options and reaffirmed its commitment to become more global.
"Beijing Automotive Industry Holding Corp states that becoming more international... has always been our strategic focus," it said in a statement.
"With regard to Koenigsegg's withdrawal, we will carefully evaluate this project anew and make appropriate arrangements," BAIC said.
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Sweden effectively ruled out a state bailout of Saab, saying a private owner was the company's only chance to survive.
BAIC has been in the market for foreign car brands and intellectual property, but is less interested in the more complex proposition of running a loss-making manufacturing operation outside its home market, analysts said. Accordingly, it is unlikely to come back and make a solo bid for all of Saab.
"The pullout of Koenigsegg may not be a chance for BAIC as it seems to be," said Zhang Xin, an analyst at Guotai Junan Securities. "It's true that BAIC does not have its own car brand and it's desperate to get the technology, but it might not get it."
BAIC could still return to the table if it sees a chance to selectively buy some of the Saab assets it wants, in particular some of its older product designs, said Boni Sa, an analyst at CSM Worldwide.
"I think BAIC might give it a try if it has a chance to get the old Saab 9-5 and 9-3 platforms," Sa said. "Even though the technologies are a bit outdated, they're better than nothing."
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