REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab?
 

<p>Filed under: <a href="http://www.autoblog.com/category/china/" rel="tag">China</a>, <a href="http://www.autoblog.com/category/gm/" rel="tag">GM</a>, <a href="http://www.autoblog.com/category/saab/" rel="tag">Saab</a>, <a href="http://www.autoblog.com/category/earnings-financials/" rel="tag">Earnings/Financials</a>, <a href="http://www.autoblog.com/category/koenigsegg/" rel="tag">Koenigsegg</a></p><a href="http://www.reuters.com/article/idUSPEK20226320091204"><i mg hspace="0" vspace="4" border="1" alt="" src="http://www.blogcdn.com/www.autoblog.com/media/2009/12/baic_saab_r2.jpg" /></a><br />
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Beijing Automotive Industry Corporation (<a href="http://www.autoblog.com/tag/BAIC/">BAIC</a>) could still be in the game for Saab, having secured a $2.93 billion line of credit from the Bank of China. On the other hand, BAIC could just be gearing up for its own home-grown expansion plans, with an eye on ramping up production and putting financial and technological legs underneath its partnerships with Mercedes and Hyundai.<br />
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Or... it could be doing both: trying to buy Saab and as well as remodel its business. The deal for <a href="http://www.autoblog.com/tag/Saab/">Saab</a> between <a href="http://www.autoblog.com/tag/General+Motors/">GM</a> and <a href="http://www.autoblog.com/tag/koenigsegg/">Koenigsegg</a> was for about $1 billion: the <a href="http://www.autoblog.com/2009/10/06/report-swedish-government-to-guarantee-615m-eib-loan-for-saab/">European Investment Bank approved a loan for $615 million</a>, and <a href="http://www.autoblog.com/2009/09/09/report-chinas-beijing-automotive-takes-a-minority-stake-in-saa/">BAIC provided about $400 million</a> by buying a minority stake in the Koenigsegg Group. If BAIC did its own deal with GM for that same amount -- although we have a feeling they could get a Christmas discount -- that would leave nearly $2 billion for BAIC to take care of Saab and invest in its own operations.<br />
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This is, of course, pure speculation -- BAIC could have something else in mind entirely. All we know right now is that they've got a lotta yuan just sitting around waiting to be spent, and <a href="http://www.autoblog.com/2009/11/07/report-baic-koenigsegg-may-produce-saab-9-5-in-china/">aborted plans to build the new 9-5 in China</a>. This Saab story isn't finished yet...<br />
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[Source: <a href="http://www.reuters.com/article/idUSPEK20226320091204">Re uters</a>]<p style="padding:5px;backgr ound:#ddd;border:1px solid #ccc;clear:both;"><a href="http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/">REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab?</a> originally appeared on <a href="http://www.autoblog.com">Autoblo g</a> on Sun, 06 Dec 2009 12:37:00 EST. Please see our <a href="http://www.weblogsinc.com/feed-terms/">terms for use of feeds</a>.</p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href=http://www.reuters.com/article/idUSPEK20226320091204>Rea d</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/forward/19266503/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2009/12/06/reuters-chinas-baic-secures-2-1b-line-of-credit-is-it-for/#comments" title="View reader comments on this entry">Comments</a>

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