SAIC Motor may take passive stake in GM's Saab

• Source: Global Times
• [13:34 September 09 2009]
• Comments

China's largest automaker SAIC Motor group may take a passive stake in Saab Automobile by teaming with luxury sportscar maker Koenigsegg, a source with knowledge of the situation said Tuesday.

SAIC, a General Motors' China partner, is interested in buying into the US automaker's Swedish unit, but its ill-fated investment in South Korea's loss-making Ssangyong Motor years ago, weighs on its decision, the source who declined to be identified due to the sensitivity of the issue, told Reuters.

"SAIC is considering taking a stake in Saab but has not made up its mind or the size of any possible investment," said the source.

"If it finally decides to go ahead, it will most likely be the parent company rather that the listed SAIC that would take a stake in Saab."

Koenigsegg struck an accord in June to buy Saab from General Motors, backed by US and Norwegian investors.

In August, the Detroit automaker and Koenigsegg said they had a deal ready but questions regarding financing remained.

Sweden's Dagens Industri business daily reported late on Monday that a Chinese car manufacturer would be going in on the Saab deal with Koenigsegg as part owner. It quoted an unnamed source as saying that the unnamed investor had helped cover what is understood to be a 3 billion Swedish crown ($420 million) gap in financing for the purchase.

There was a big possibility that the SAIC Motor is the Chinese investor, the paper added.

A SAIC spokeswoman declined to comment on the speculation.