Automotive News

Shanghai, December 28 (Gasgoo.com) Beijing Automotive Industry Holding Corp (BAIC) plans to use Saab's technology to build three to four own-brand passenger car models over the next three years, media reported.

BAIC has paid $200 million to buy technology from Swedish carmaker Saab from General Motors and will use the Saab tech to develop self-branded vehicles. It plans to invest 33 billion yuan ($4.8 billion) in its own-brand vehicle research and development (R&D) over three years.

The Beijing-based automaker agreed to buy the platforms of Saab 9-3 and 9-5 models and other tooling and powertrain technologies from GM earlier this month before the GM announced it would shutter its Swedish car unit Saab.

"Someone has commented that the purchase of Saab's intellectual property can help cut short the development time for Beijing Auto's own-brand passenger vehicles by 4-5 years," BAIC Chairman Xu Heyi said. "We basically agree with the view."

BAIC will immediately start integrating Saab technology into its vehicles with an aim to sell 100,000 self-developed passenger vehicles in 2011. Construction of a plant with annual capacity of 150,000 cars will be complete in 2011.

The fifth largest Chinese automaker, a partner of Hyundai Motor and Daimler AG, expects to sell 1.24 million vehicles this year and is planning IPO, Reuters reported last week.