Giving The Leg Up? GM Sold SAAB Technology To Chinese For Only $197 Million

Beijing Automotive Industry Holding Co. paid 1.4 billion crowns ($197 million) to buy the intellectual property rights and equipment to make Saab's 9-5 and to purchase some technology rights to the 9-3, Swedish business daily Dagens Industri reported.

"The purchase price is 1.4 billion crowns and the money was in Saab's account already on Friday," Dagens Industri said Monday, quoting a source involved in the process.

The money is enough to keep Saab running for three months, the source said, meaning there is no immediate threat of the company going under.

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Joe_Limon - 12/15/2009 11:26:09 AM

+3 Boost

Wait, what tech did saab have again?

Joe_Limon - 12/15/2009 2:12:14 PM

+3 Boost

So what you're saying is that at least this way GM can make a profit on China copying their designs?

fatandsassy - 12/15/2009 2:03:50 PM

0 Boost

Saab has tech?
Enough money for 3 months DOES mean they are immediate danger. Especially when they have nothing selling. Who is buying a SAAB these days. UMMM no one in the USA. GM should let this one go right behind Saturn. There is no need for Saab anymore. Yeah the once had a convertible that was pretty popular but that gone. The 9-3 and 9-5 have not changed in like forever and the interior is so unfriendly. They can not compete with BMW, AUDI, and Benz right now.

dumpsty - 12/15/2009 3:41:53 PM

+2 Boost

I believe the GM-BAIC deal was to transfer control of the last-gen 9-3 & 9-5 production equipment to the Chinese. GM basically sold off hardware that's really not necessary to anything they're selling today or will be selling in the near future.

I do think that SAAB holds quite a few tech patents that GM will not give up. Which may be reason for the failed deal with Koenigsegg.

Agent009 - 12/15/2009 4:43:11 PM

0 Boost

$197 million is a small price to pay to bring yourself into the 2006 technology from the 1980's. The deal of the century for them.

ThierryHenry14 - 12/15/2009 5:15:09 PM

+2 Boost

Welcome to this concept call capitalism. You see, with this new concept called capitalism, one party has money, but are in need of something. Another party possesses this something, but are in need of money. You have supply (GM and SAAB's tech) and you have demand (CHINESE Companies in need of technology)... You put the two parties together, VOILA!! You get a buyer and a seller, simple concept.

If only I came up with this concept earlier...

Bmw8ter - 12/15/2009 7:39:25 PM

+1 Boost

Unfortunately capitalism doesn't produce good results in all situations...i.e., the U.S. healthcare system. Without an "800lb gorilla in the room", you can impose any measure you want. Capitalists will always find a way around it.

ThierryHenry14 - 12/15/2009 8:43:53 PM

+1 Boost

welcome to the free market economy... The only government intervention should be to protect against fraud and force...

TheDepressingTruth - 12/15/2009 9:33:08 PM

+2 Boost

It takes $65,670,000 A MONTH to run SAAB?...

I've always heard that they were Highly Inefficient but this means that they need right at 630.5 million a year "float"

They've got problems that NO MERGER can fix...unless they get a total Restructurization in the process