China's BAIC to reassess Saab bid

Saab employs 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008. Sales have fallen by around 65 percent since the start of the year, while rival carmakers have begun to see a recovery.

"Considering the galloping drop in sales this autumn and its rapidly dwindling coffers, the risk of closure is now imminent," Svenska Dagbladet said.

Dagens Nyheter, which called Koenigsegg's bid "a joke from the beginning," said that "unless a miracle happens – such as a quick and unexpected bid from BAIC or another Chinese manufacturer – then this is probably the end for Saab."

Analysts said given the financial strength of BAIC and its desire to access foreign technology, the carmaker might still proceed with the bid, but by no means a solo bid.

"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.

But Xia said BAIC may need a foreign partner to clinch the Saab deal due to certain "policy restrictions abroad."

Another possibility is a selective purchase by BAIC of some Saab assets, particularly its older product designs, CSM Worldwide analyst Boni Sa pointed out.

Chen Xiaomin, agencies contributed to the story