SAAB’s Deal With China Auto Maker Is Off
At a time when many major auto manufacturers have made deals with Chinese car manufacturing companies, SAAB has announced that it has severed it’s relationship with Chinese manufacturer Hawtai Motor Co. This deal was originally intended to prop up the struggling SAAB, giving them an entry into an untapped, potentially large and lucrative market in one of the world’s fastest growing economies, as well as providing some much needed financial backing.
SAAB can now search for other potential partners in this vast economy, but it still is a significant setback in their desire to raise capital to help in their worldwide venture. SAAB was counting on this money to help keep their finances in order, and this setback severely impacts their financial future.
Other major car manufacturers are already in cahoots with other China manufacturers to offer affordable, no frills cars to the vast Asian market. GM and Honda already have deals that offer cars that will not be sold in any other markets other than China for now. This could change at some point in the future as the Chinese market matures and quality rises.
Many Car Lift and automotive equipment manufacturers have also moved much of their manufacturing to China, in an attempt to decrease labor costs to remain competitive. It’s a trend that’s sure to continue well into the future.