China's BAIC buys assets of Swedish transmission plant

Xinhua - China's Beijing Automotive Industry Holding Co. (BAIC) announced Wednesday that it had purchased all equipment and technologies from a Swedish transmission plant for 31 million euros (about 42.5 million U.S. dollars).

Ma Tongli, deputy general manager of BAIC, said the purchases from WEIGL Transmission Plant AB (WTP) were well worth the cost, as the equipment and technologies allowed it to build a production line which would normally cost 680 million yuan (about 103 million U.S. dollars).

More importantly, BAIC obtained technologies in transmission production and quality control as well as management and training support from the deal, which were of "great significance" to BAIC, said Ma.

The deal came one year after BAIC acquired intellectual property rights from General Motors' Swedish unit Saab.

State-owned BAIC, the fifth largest automaker in China, acquired the technologies for Saab's 9-3 and 9-5 car models, turbine engines and gearboxes for 140 million euros in December 2009.

Ma said BAIC aimed to absorb these technologies and forge its own ability in design, development and building of advanced gearboxes during the next five years.