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SHANGHAI – Beijing Autos has agreed to buy technology from GM’s Saab Automobile, a breakthrough for the Chinese automaker that could clear the way for General Motors Co. to sell the rest of Saab to another buyer.
An announcement Monday from state-owned Beijing Automotive Industry Holdings gave no details about the cost or timing of the acquisition of car and engine technology.
Beijing Autos, also known as BAIC, said it plans to buy the rights to some powertrain technology for Saab’s 9-5 and 9-3 sedans, including engine and gearbox knowhow.
The production equipment used to make the 9-5 will be moved to China to produce BAIC cars, and Saab will help integrate the technology into the Chinese company’s vehicles, the two sides said.
Saab will also support Beijing Auto’s efforts to build its own car brands, using the Saab technology, the announcement said.
“This arrangement is excellent for both parties, now and for the future. We have developed a good relationship with BAIC and look forward to working with them to integrate this Saab technology into their future vehicles,” Jan Ake Jonsson, managing director of Saab Automobile, said in a statement released by GM on Monday.
GM is also in talks with another buyer to sell the entire Saab brand, a person familiar with the negotiations said Sunday.
The sale of the technology to Beijing Autos will help Saab financially but won’t hinder a deal to sell the Saab brand and its current production lines to another buyer, said the person, who spoke on condition of anonymity because he was not authorized to speak about the deals.
Beijing Autos has partnerships with Germany’s Daimler AG and South Korea’s Hyundai but makes only trucks under its own brand name.
The company still has to build up its own reputation and product line, analysts said.
