Another twist in tale of failed global auto brand
Defunct Swedish carmaker Saab is again in the spotlight following a local newspaper story that its new owner signed an agreement with an investment company in Qingdao to build a plant making both conventional and electric Saab-brand cars in the eastern Chinese city.
The report from Qingdao said the plan calls for a 10 billion yuan production facility with a designed production capacity of 400,000 vehicles a year.
Saab was acquired by National Electric Vehicle Sweden AB last August, which hopes to revive the brand with a battery-powered version.
NEVS confirmed its plan to produce vehicles in Qingdao in an emailed statement to China Daily but declined to comment on details of the Chinese-language report.
It also said that the city government of Qingdao, through its investment company, has taken a 22 percent share in NEVS for 2 billion Swedish krona ($310 million).
"Further investments will be made in a joint venture company in China," the statement said.
Fundamental change
The latest move marked a fundamental change in the NEVS business plan. When it bought Saab last summer, the company said that it would not produce automobiles anywhere other than Saab's former Trollhattan plant.
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