Beijing Automotive Industry Holding (BAIC) the Chinese partners in the Koenigsegg deal to purchase Saab are weighing their options regarding Saab.
On Tuesday morning, Swedish supercar maker Koenigsegg Group announced that they were abandoning the purchase of TrollhÃƒÂ¤ttan based Saab due to costly delays.Ã‚Â BAIC released a statement saying “It has always been an important strategy to go international… Given the pullout of Koenigsegg, we will reassess this project in a prudent manner and make proper arrangements.”
Several automotive analysts have said that BAIC might still proceed with the bid given the financial strength of the Chinese auto industry and their desire to gather foreign technology.
“There are chances that BAIC may continue the bidding using its own financial resources as long as it remains optimistic about the outlook of the Chinese auto market.” Xia Ping, an analyst with Core Pacific – Yamaichi told AFP.
“An aquisition is still possible judging from BAIC’s own financial strength. It may also win some policy support on financing” she futher added.
In the first two quarters of this year BAIC has reported a net profit of 370 million USD up 78% in comparison to the same time in 2008. Under GM’s stewardship Saab rarely posted a profit and lost 3 billion kronor (340 million USD) last year.
BAIC was founded in 1958. It is China’s fifth largest car maker, and is currently in joint ventures with both Germany’s Daimler and South Korea’s Hyundai.