Smartphone manufacturer Xiaomi intends to buy the legendary Saab brand

Smartphone manufacturer Xiaomi intends to buy the legendary Saab brand

Saab may become part of the Xiaomi concern. This will open the way for the digital giant to produce cars – primarily electric cars.

This is reported by RBC-Ukraine, citing Reuters.

Saab’s history has undergone many twists and turns since the company was declared bankrupt in 2011 when China’s National Electric Vehicle Sweden (NEVS) acquired most of its assets, including a plant in Trollhättan, Sweden. The brand’s current owner, development holding company Evergrande Group, is going through a financial crisis and is reportedly interested in selling NEVS.

Evergrande Group is one of the largest real estate companies in China. But a record number of court cases in recent years have forced it to seek funds to pay off some of its debts, which exceed the $100 billion mark. That’s why the company is trying to sell its auto business, including NEVS, which was fully acquired by Evergrande in 2020.

Xiaomi is interested in buying Evergrande Group’s automotive sector because the tech company wants to produce electric cars. According to Evergrande Group’s CEO, the company wanted to become the world’s largest electric car manufacturer. Therefore, the company acquired stakes in Faraday Future and battery maker CENAT, while also investing in Koenigsegg.

After a failed attempt to restart production of an electric sedan based on the Saab 9-3 in 2017, the company tried again in 2019 at a plant in Tianjin, China.

Even if Xiaomi acquires Saab, we should not expect a “revival” of the legendary Swedish brand in the coming years. What the Chinese digital giant needs from Saab is technology, production capacity, and sales markets.

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