Saab deal to reached within weeks, China sales to be ramped up

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China is a very weak market for Saab, who only managed to sell 900 cars last year in teh worlds hottest auto market. GM first introduced Saab into China five years ago, but has only had limited sales so far, this could be due to their very small dealership network and limited advertising scope in the Peoples Republic of China, however a partnership between Koenigsegg and Beijing Automotive Industry Corporation (BAIC) is likely to see Saab sales in China surge.

Koenigsegg is likely to lean on its Chinese partner to further the development of a Chinese sales network and aid in Chinese marketing. The success of the Beijing-Hyundai joint venture is likely to serve as a case study to improve sales with the introduction of the right models into the market.

The Sweedish-Chinese tag team are aiming to make Saab profitable by 2012 with a yearly production rate of 100,000 cars. GM is not expected to put the brakes on any Chinese market limitations like it would have done with Opel sales, as Saab and Opel cater to different market segments, although the GM Epsilon II platform is shared with Saab for its 2010 9-5 model, which is also produced in China for the Buick Regal. If GM comes to a deal between Shanghai-GM, and BAIC, China might see a Chinese produced Saab somewhere around 2013.