Beijing Automotive Industry Holding Co. today confirmed that it has inked a deal to acquire some of the assets of General Motors’ Swedish unit Saab, including intellectual property for two sedans and equipment to produce those cars, Dow Jones reported.
Beijing Auto has bought the intellectual property rights for Saab’s current 9-3 sedans and 9-5 mid-size car (excluding its new 9-5 version), and will also acquire turbine engines and gearbox technology from Saab, as well as some of the brand’s manufacturing equipment, the Chinese automaker said in a statement.
The Swedish carmaker said that tooling for its current 9-5 model will move to China where it will be used to make Beijing Auto’s vehicles, and Saab will assist the Chinese automaker in integrating the technology into its future vehicles, perhaps its own Beijing-brand cars.
The deal, whose financial details are not provided yet, is part of China’s broader plans to create several globally competitive automakers by consolidating domestic auto companies and acquiring troubled foreign auto assets or their technologies.
Beijing Auto, China’s 5th-biggest carmaker, obtained a 20 billion yuan ($2.93 bln) line of credit from the Bank of China earlier this month. The carmaker said the money could be used for its technology upgrade and capacity expansion.