On Saab and production in China

Dippen spotted this news story on the Swedish Public Service Radio site and has posted through a quick translation to me.

A little bit of background……

At this point, it is understood that prospective part-owner in the Koenigsegg Group, Beijing Automotive (BAIC), will most likely seek to acquire tooling for the outgoing Saab 9-5 and possibly a generation of the saab 9-3 for local production in China.

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Expert has high hopes on Saab in China

High end Saab models that are produced in Trollhättan and more low key Saab models that are produced in China, that is what Saab Automobile’s future can look like, according to Tony Fang who is a professor at Stockholm University.

– What I mean is production will be both in Sweden and in China” says Tony Fang who has studied Beijing Automotive’s latest move to invest in the new ownership structure of Saab.

Less luxurious models but with the same high quality, that may have tomorrows technology could be developed and produced in China in the future. At the same time Trollhättan could produce more high end models.

That is how Tony Fangs analysis looks, because China invests a lot to take big steps in technology of the future.

The thing that Chinese corporations do not have, the thing that they do have to learn is management of organisations on a global scale, This is why Saab is interesting.

And one should not underestimate the help Saab will get from the Chinese market, especially to keep in mind that Beijing municipality is involved in Bejing Automotive. Chinese customers do have a lot of confidence in these companies and this could give Saab a big advantage in the Chinese market

If the partnership would be successful then Beijing Automotive will get even more involved in Saab and invest more money to develop Saab.

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An inference could be drawn that suggests he’s talking about producing current models in China, which as I understand it is not in the plans at this point in time.

As I mentioned at the top, the only things that seem to have been spoken of publicy are to BAIC to produce outgoing generations for the domestic market.

One could look into the future, however, and if Saab and BAIC succeed in growing the company, then Chinese production for limited export could also come into play. I think there’s a lot of water to flow under the bridge before that happens, however.

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