SAIC May Buy Saab Brand at ‘Low Price,’ Economic Observer Says

Dec. 13 (Bloomberg) -- SAIC Motor Corp. may buy Saab Autmobile AB’s assets at a “low price” from General Motors Co., the Beijing-based Economic Observer reported, citing sources close to SAIC it didn’t identify.

The Shanghai-based automaker, China’s largest, may wait until Saab completes bankruptcy and then buy “core assets” including the brand and platforms, the newspaper said. GM narrowed its options for the Swedish unit to at most three bidders, people familiar with the matter said Dec. 2. It’s reviewing proposals by Spyker Cars NV and Renco Group Inc., with Renco less likely to win, they said.

The Detroit automaker is still weighing a sale of certain Saab assets to Beijing Automotive Industrial Holding Co., those people said. The Beijing-based company also aims to wait until Saab’s bankruptcy in order to buy some production lines and engine technology at lower prices, today’s report said.

“Chinese automakers are seeking to acquire advanced technology and platforms to enhance their competitiveness,” said Yale Zhang, a Shanghai-based director at auto consulting company CSM Asia.

Beijing Auto plans to “move fast” on Saab and seeks to improve its technology, President Wang Dazong said Nov. 30. China’s passenger-car sales surged 98 percent last month, the most in at least five years, as government incentives spurred demand in an auto market poised to surpass the U.S. this year as the world’s biggest.

Saab will probably win European Commission approval for a 400 million-euro ($590 million) loan regarded as vital to any sale, a Swedish official said on Dec. 10.

Signs appear positive the commission will rule that a Swedish guarantee for the European Investment Bank financing isn’t improper, said Johnny Kjellstroem, a deputy director at the Ministry of Enterprise, Energy and Communication, who is negotiating the case with the European Union’s regulatory arm.

GM said last week it will review bids for Saab and decide the unit’s fate by the end of the month. Calls made today to SAIC spokeswoman Zhu Xiangjun weren’t answered.