General Motors has entered discussions with China’s fifth largest automaker, Beijing Automotive Industry Holding Group (BAIC), about a partial sale of assets associated with its Swedish brand, Saab Incorporatedluding tooling and technology.

BAIC showed its interest in Saab in order to upgrade its technology and expand production. Due to its lack of in-house brands, the automaker has decided to set up production in China based on an older generation of Saab vehicles Incorporatedluding the 9-5 and 9-3 models.

The partial sale of the Saab technology would imply a liquidation of other assets held by the brand Incorporatedluding its headquarters, threatening more than 3,000 jobs in Sweden. However, General Motors (hereafter, GM) is eyeing other bidders, who might be interested in buying out the complete operation of Saab Incorporatedluding its production hub in Trollhattan , Sweden . The Swedish government is also aiding in the conclusion of the sale.

Earlier this year, Shanghai Automotive Industry Corp. (SAIC) intended to acquire a stake in the unit, teaming up with Swedish luxury sports car maker Koenigsegg, which did not work. Later, BAIC agreed to provide financing to Koenigsegg, who pulled out of a tentative deal to buy the unit last month.

GM has put the Saab unit up for sale after it came through a bankruptcy funded by the U.S. government in July. The automaker is currently focusing on its remaining four core brands – Chevrolet, Cadillac, Buick and GMC. Time is running out for GM as it is required to conclude the deal by the end of this month. In this situation, a partial sale and liquidation seems to be the best answer.
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