Beijing Automotive Industry Holding (BAIC) on Wednesday told state media it would “reassess” its options after a plan to buy Saab with Koenigsegg collapsed, but did not elaborate.
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“It has always been an important strategy of BAIC to go international,” BAIC said in a statement quoted by Chinese web portal Sina.com, AFP reported.
“Given the pullout of Koenigsegg, we will reassess this project in a prudent manner and make proper arrangements,” the statement said.
BAIC declined to comment.
Analysts told AFP BAIC might still proceed with the bid given the financial strength of Chinese automakers and their desire to access foreign technology.
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By GlobalData“There are chances that BAIC may continue the bidding using its own financial resources as long as it remains optimistic about the outlook of the Chinese auto market,” Xia Ping, an analyst with Core Pacific – Yamaichi, told the news agency.
“An acquisition is still possible judging from BAIC’s own financial strength. It may also win some policy support on financing,” she added.
For the first six months of the year, BAIC reported a net profit of US$370m, up 78% year on year, previous state media reports have said.
Xia added BAIC may need a foreign partner to clinch the Saab deal due to certain “policy restrictions abroad”.
