Beijing Auto seeking alliance like Renault-Nissan

Shanghai, September 15 (Gasgoo.com) By planning to indirectly own part of Sweden's Saab, Beijing Automotive Industry Holding Co. is seeking a "strategic alliance" modeled on the Renault-Nissan Alliance, the Wall Street Journal said today, citing a top executive of Beijing Auto. 

"The model we want to pattern after is Renault-Nissan," Beijing Auto President Wang Dazong said in a recent interview. "It is an alliance that uses each other's strength to benefit both."

Beijing Auto and Sweden's Koenigsegg Group - the bidder for General Motors' Saab unit, would aim to boost efficiency by sharing technology and other resources. Mr. Wang said they would focus on growth rather than on reducing headcounts or shuttering plants to save money.

Last week, Beijing Auto struck a deal to take a minority stake in Koenigsegg and help it close the funding gap it needed to buy Saab. Mr. Wang noted the two companies are aiming to finalize the deal by the end of this year.

The Renault-Nissan alliance is a rare success. Since Renault agreed to pump money into near-bankrupt Nissan in 1999 for an equity stake, the two carmakers have saved substantially by sharing technologies and jointly purchasing components, while keeping separate brands and corporate identities.

Mr. Wang sees many opportunities for joint projects with Saab. "We see Saab can grow substantially in China with our help, and we can also grow globally by leveraging Saab's strengths," he said.