BEIJING — A deal announced earlier this week by Beijing Automotive Industry (BAIC) to buy the rights and tooling to older Saab vehicles and engines is the latest in a government push to improve China's domestic auto industry to make it globally competitive.
BAIC plans to use the Swedish automaker's technology in a new family of vehicles that it plans to launch next year in China under its own brand.
The Beijing-branded portfolio is expected to include a range of vehicles, including SUVs, sedans and coupes, some developed with technology from local partners Hyundai and Mercedes-Benz.
BAIC has a $1.5 billion financial subsidy from the Beijing government, of which $450 million will be spent on rolling out its self-brand vehicles, including some hybrid and pure electric models.
Inside Line says: Beijing Auto is beginning to gain strength, and not just from its existing partnerships with multinational auto giants. — Vivian Jin, Correspondent
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