Saab heads for China

Saab has big hopes for sales in China with the help of their investment partner Beijing Automotive Industry Holding Co (BAIC).

Saab has to make a move to mop up new sales wherever it can as it moves under the ownership of Koenigsegg. Its sales have been pretty poor over the last few years and an increase in sales is essential if Saab is to re-establish itself as an independent car maker. The launch of the new Saab 9-5 this week at Frankfurt is a good start – it seems a fine car – but Saab cannot rely on making sales in its own backyard to become viable.

So Saab are looking further afield – to China in particular. Which in itself says something about the deal Koenigsegg has cut with GM. GM forced the Opel/Vauxhall deal with Magna to carry a clause restricting sales of those marques in emerging markets to protect its own sales. But no such clause exists for Saab.

And the big plus for Saab is the investment in the Koenigsegg deal with Saab by Beijing Automotive Industry Holding Co (BAIC). BAIC has a big car sales network in China, offering Saab a much easier route to market than most manufacturers enjoy. Saab already markets their cars in China, but managed sales of less than 1,000 in the last year. They’re hoping for much bigger things with the help of BAIC. Saab’s boss – Jan-Aake Jonsson – said “Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience”

Onwards and upwards, then.