Powerful opportunity awaits Saab in China if they can take the chance


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Friday, 20 May 2011
Recently, Spyker, gained a contract with the Chinese car dealer Pang Da. In the near future it is expected that Muller will find a Chinese company that build cars and that he should do that in a market that is constantly changing. There are lost of options for Muller to choose from.

China is the world's largest car market now. And the numbers of car manufacturers are so many that it's hard to keep count. For, even if we take them together, it is still hard because a company that currently builds tractors may decide to assemble cars in the morning. But, according to Radio Sweden, it is determined that there are about 123 just to be close to the truth.

The vast majority of these companies are relatively small and scattered over the provinces of China. Dadi Auto Group is one of those. They build between 30 and 50 thousand cars per year. These companies mean a lot to their provinces and are protected by the local political leadership. But some producers have grown and become national. Among them is Cherry which builds 700 000 cars per year. Cherry has also taken the next step into the international market.

China's government now wants to select 4 large corporations to be the national champion that will start buying up smaller carmakers, and consolidate the market. But so far there has been a bit of sluggishness in the process.

According to Frederic Cho, advisor at Handelsbanken in Sweden and an expert on China, speaking to radio Sweden, he quotes a Chinese proverb: If a decision is taken in Beijing, so a retro decision will also be taken at the local level. "
“That is to say that China is more decentralized than what Beijing hoped for, "said Frederic Cho to radio Sweden.

And in the case of Saab's future, there are thus still many potential partners in China to play with. There are more than 40 Chinese automakers which Saab can deal with in the future.
Asked if Cho can you see any potential partner for Saab and Spyker in China.
“As it has been the past few weeks so we should probably not exclude anyone, "said Frederic Cho.

Frederic Cho believes that Saab has a good chance of finding a Chinese partner, but it is complicated in China. “I believe and hope that they do. But I know after all the years that it takes time in China, it is an eternal scrape,"said Frederic Cho.
By Team

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