China's BAIC joins Koenigsegg's deal to buy Saab

China's Beijing Automotive Industry Holdings has signed a deal to become a minority stakeholder in Koenigsegg Group AB's deal to by Saab Automobile from General Motors Corp, reports Reuters Wednesday.

Koenigsegg says in a statement Wednesday that the Chinese automaker has signed a memorandum of understanding to become "a non-controlling minority shareholder in Koenigsegg Group."

"This is an important step on the road toward a new Saab. We have a well prepared business plan, an important partnership and we are ready to proceed without state financing, " said Koenigsegg Chief Executive Christian when talkiing of the bid.

"China is the biggest market in the world," von Koenigsegg said. "It is bigger than the US and Japan together, and given that Saab has no presence there at all, it should change things rapidly" to enter the market.

GM began to seek a buyer for Saab when the Swedish unit, which has been unprofitable for most of the two decades since GM owned it, was granted protection from creditors in February.

GM reached an agreement in June to sell the division to Aengelholm, Sweden-based Koenigsegg, who has been looking for additional financing to complete its takeover of Saab. It says the deal with BAIC will be completed later this year.

Saab sold just 93,295 vehicles worldwide in 2008, 21,383 of them in the United States. As global demand plummets, the expectations for 2009 are even direr.

Also on Wednesday, Chinese carmaker Geely Automotive said its parent is involved in a bid for Ford Motor's Volvo Cars unit, and the bidding may need help from a state-owned investment firm.