Chinese Bidders Eye Saab's Carcass

SHANGHAI, China — General Motors may transfer control of its Saab brand to Chinese partner Shanghai Auto, although two other Chinese automakers, Beijing Auto and Geely, also have expressed an interest in acquiring some or all of the assets of the moribund Swedish firm.

According to the Chinese Web site Sohu.com, GM and Shanghai Auto (better known as SAIC) have reached a secret agreement under which GM would transfer ownership of the Saab brand, platform and other core assets to SAIC after a bankruptcy liquidation of Saab.

The site also said Beijing Auto (known as BAIC), which had supported Koenigsegg's abortive bid to purchase Saab, now may be waiting, too, for a Saab liquidation in order to acquire the old 9-5 production tooling and an engine assembly line.

Last week, Reuters reported that a third Chinese brand, Geely, also might be interested in acquiring some of the assets of Saab. Geely is the front runner in the bidding to purchase Sweden's other automotive brand, Volvo, from corporate parent Ford.

The Sohu.com story said Saab could be absorbed into the SAIC-GM-Wuling joint venture, which primarily focuses on production of minivehicles in China and is expected to provide engineering and platforms to the new GM-SAIC joint venture in India.

SAIC, through its Roewe subsidiary, currently owns the rights to two former British brands, MG and Rover, which it intends to leverage in its impending push into major overseas markets, including North America.

Inside Line says: Saab could add a premium name to SAIC/Roewe's premium brand portfolio. — Hu Lei, Correspondent