Experts not optimistic about Saab’s return to China

　　When discussing about Detroit Auto Show, we should pay attention to the development of several automobile manufacturers in North America. Now lets' come to another report which is about Saab's return. Some time ago, it should be said that Saab withdrew from China's auto market completely. Due to some financial problems, the ownership of Saab was uncertain. We had heard a lot of rumors. Recently there is a report saying that Saab has signed an agreement with China Automobile Trading Co., Ltd. and Saab will enter China's auto market in July 2011. Moreover, Saab will take a cooperative method to sell vehicles in China. Will Saab succeed in China's market?

　　Zhang Yaodong: Saab will face difficulties if it returns to China's auto market. Previously, Saab had planned to return to China in October 2010. However, the original plan was delayed by a year. This problem results from something lying behind Saab's return. In fact, Saab has to choose which partner to cooperate with in China and there is a series of stories.

　　Host: Previously there were some reports about the cooperation between BAIC and Saab. BAIC acquired some technologies from Saab.

　　Zhang Yaodong: Not long ago, I discussed with some staffers of BAIC on this topic. Their products have entered a very critical phase and those models cannot be ascribed into the category of Saab. Based on the products bought from Saab, BAIC developed its own vehicles. BAIC's plan is in the process. Currently 2.0-liter turbo engine is a big selling point. BAIC had bought plenty of technologies. As to the imported models, Saab will cooperate with China Automobile Trading Co., Ltd. It may be very difficult for Saab to enter China's auto market through the previous way.

　　Host: What are the major difficulties? The cooperation with General Motors ended. Saab also had contacts with a number of automakers. However, in the end there was no result. What are the causes that lead to Saab's failure in cooperation with other automobile manufacturers?

　　Zhang Yaodong: Personally speaking, in recent years Saab gradually became a niche brand under the General Motor's ownership. After acquiring Saab, General Motors carried out the project of transformation with the philosophy of globalization. Previously, Saab was an automobile manufacturer which was able to accomplish research projects independently. According to the global strategy of General Motors, Saab assumed a part of research and development tasks. Saab's products also followed the same way. Then Saab was faced with financial problems. The development of its products was delayed by a generation-approximately five years. Regarding the industry basis, Saab was just a member among all the brands owned by General Motors and it had lost the comprehensive aspects of an independent brand. Moreover, Spyker is not a very strong company. After acquisition, it is very difficult for Spyker to save Saab in Europe and China. The most realistic basis for Saab is that this brand still has some recognition in China. I think it is an acceptable way to import some models of Saab in China for special needs. I am more concerned about how BAIC will use Saab's technologies.

　　Host: Mr. Xu Feng, what do you think about the future of Saab? Based on the analysis by Zhang Yaodong, perhaps in a certain period the sales volume of Saab is quite limited.

　　Xu Feng: The future prospect may be worse. I am not particularly optimistic about the condition of Saab in the long term. Just like other major automobile manufacturers, Saab is eager to enter China's auto market. Currently, China is the largest auto market with the biggest increment in the world. Any automaker will be marginalized if it does not enter China's market. Previously, people paid great attention to the cooperation between Saab and BAIC and to a certain extent the exposure rate of Saab is still relatively high. Now Saab is ready to enter China' market. I think Saab wants to catch this chance to promote its brand. However, the current situation in China's auto market is quite different from the former condition. Not all the brands can obtain some market shares. Previously, some new brands, such as Infiniti, were able to achieve sound sales. Now the situation is different. Currently China's auto market has become much more mature and the condition is relatively stable.

　　Host: We can wait and see. From July 2010, Saab will begin selling imported models in China, including Saab 9-5 and 9-4X Crossover. Today's live newsroom is coming to an end. You can view the website of Sohu Auto to listen to our programs. Or you can read Economic Observe which is published this week. Thank you. (Translator: Qinghua/Hanxin)

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