GM gets $197 million from BAIC for Saab key assets purchase
By Andrew C., 26 Aug, 2010. 0 Comments
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Saab got some much-need infusion of funds when Beijing Automotive Industry Holding Co. paid 1.4 billion crowns ($197 million) to purchase the intellectual property rights and equipment to make Saab's 9-5 and to purchase some technology rights to the 9-3, according to a report from Swedish business daily Dagens Industri. As part of a plan to develop its own-brand cars, BAIC moved to acquire some assets of General Motors Co.'s Saab unit. Dagens Industri reported last Monday that the money was placed in Saab's account on Friday. This amount would only be enough to keep Saab running for three months, eliminating the immediate threat of the company going under. Saab is currently in negotiations to find a buyer before the end of this month or else GM will wind down the company. What the cash infusion does for Saab is to give it some time to finalize a deal.
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