Dongfeng Auto announced today that it has bought a 70% share in the Swedish engineering firm, T Engineering AB. T Engineering was a spin off from Saab Automobile Powertrain and focuses on developing powertrains for the automotive world.
The original agreement was signed on December 8th 2011 and will see Dongfeng buy 70% of the company in stage one and in stage two buy the remaining 30% after a two year waiting period which will see T Engineering become Dongfeng’s first overseas R&D facility.
According to Dongfeng’s Overseas Spokesman, Zhou Mi, the company bought T Engineering to assist Dongfeng in developing energy efficient and new energy vehcicles and will jointly work on 3 new technology projects in 2013.
“Saab’s Engineering Company” is quite an overstatement. T Engineering AB has 32 employees while Saab Automobile AB had over 900 engineers. Still good news for the Swedish automotive industry that big companies wants to invest in Sweden.