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Thursday, October 1, 2009

Hot News: BAIC Set to Buy Old 9-5 Design


The Beijing Automotive Industry Corporation (BAIC) is poised to buy the tooling and design rights to the outgoing Saab 9-5, according to Autocar sources.

BAIC recently became a minority shareholder in the Koenigsegg Group, which is attempting to buy Saab from General Motors.

If the plans go ahead, the 9-5 will be ‘shifted lock, stock and barrel’ to China. Production of the 9-5 estate is expected to end in the next few weeks.

There’s no news as to whether BAIC intends to re-start production of the 9-5 in an unchanged form or whether it will re-skin the car for sale under BAIC’s own brand.

Such moves by Chinese carmakers are increasingly common. Production of the Rover 75 and MG ZT was re-started in China after MG Rover collapsed and production of the Alfa Romeo 166 was moved to Guangzhou Auto last year.

The 9-5 is powered by Saab’s own long-running slant-four turbocharged petrol engine. The factory building this engine was wound-down earlier this year, making it another potential buy-out target for BAIC.

Shifting production of the defunct engine to China would be a much simpler operation than re-engineering the 9-5 to accommodate a new drivetrain.

Although Saab is racing to install the all-new 9-5 into its Trollhatten factory, the Koenigsegg Group has still not finalized its buyout deal with GM.

At the time of writing it is still negotiating a substantial loan with the European Investment Bank. GM has set a deadline of 31 December for its planned sell-off of Saab.

Thanks to: Autocar

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