Caixin
Jun 19, 2012 06:01 PM

No Plan to Move Saab Production to China, Buyer Says

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(Beijing) –The buyer of Saab says there are no plans to move production, despite a statement by the Swedish automaker that it will make China its target market after its sale to a Sino-Japanese investment group.

Kai Johan Jiang, chief executive of National Electric Vehicle Sweden (NEVS), which bought Saab, said on June 18 there were no plans to move manufacturing from Trollhattan, Sweden, to China.

On June 13, bankrupt Saab said it had agreed to sell its main assets to NEVS, including Saab Automobile AB, Saab Automobile Powertrain AB and Saab Automobile Tools AB, and the rights to the 9-3 model and technology for the new Phoenix model.

NEVS is jointly owned by Hong Kong-based biomass power plant operator National Modern Energy Holdings Ltd. and Japanese investment firm Sun Investment LLC.

Saab will focus on the development of electric cars, but will not consider hybrid vehicles, Jiang said.

Saab said the first vehicle would be electric and based on the 9-3 model. It will go on sale by early 2014 and target the China market.

No financial details of the deal have been revealed, but market observers speculated the value of the transaction would be about US$ 250 million. Jiang refused to disclose the amount, but said NEVS' bidding "is not the highest," "but we are the most sincere."

NEVS started negotiations with Saab one year ago and there were 13 international competitors, Jiang said. "Our efforts in clean energy have been well recognized, and this is the major reason for us to win the deal," said Jiang, the founder of National Modern Energy Holdings.

The company was started in 2004 and is controlled by Beijing-based State Power Group, which operates 28 biomass power plants in China.

 

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