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  • Tianjin City likely location for Chinese Saab factory

    Saab maybe shuttered for July and possibly August, but that has not stopped plans moving ahead for the production of Saab’s in the Chinese market, thanks to a life saving investment from Chinese partners Youngman and Pangda, the trio are planning to pin Saab’s survival on the red hot Chinese market. The Swedish-Chinese love triangle is working hard to find a suitable area for the new factory and a final decision should be made closer to August according to media reports, various reports are indicating that Tianjin is likely to be home to Saab in China.

    Tianjin is located close to the political powerhouse of Beijing and is also a major automotive import hub with many key suppliers located close by. Tianjin is also home to Great Wall who recently set up a factory in the city.

    Saab recently sent a team of engineers to visit Youngman’s production facilities in China, the engineers found that Youngman’s current production lines could be altered to produce Saab vehicles with a minimal amount of fuss. The new factory is expected to have a capacity of around 150,000 vehicles per year when it is finally brought online. Chinese production maybe two years away at the earliest owing to building the factory and gaining governmental support, in the meantime Saab may have to rely on imported car models in the Chinese market.

    Source: http://www.chinacartimes.com/2011/07...-tianjin-city/
    Comments 1 Comment
    1. Shazam's Avatar
      Shazam -
      The company I work for just had a meeting today where they tossed about the idea of bringing their Chinese production (only a small number of product is built there) out of China, or possibly only keeping it to produce stuff for the Chinese market. The Yuan is expected to catch up to the dollar at almost 15% a year for the next few years (imagine what that means for the Kroner), which means there won't be much savings that way. Also, Chinese labor isn't as cheap as it used to be, and is quickly increasing. Not to mention that so many products from China have been shown to be of lower quality (happens at the place I work. No matter what management does in the States, we always have to depend that they are building it to our specs, which isn't always the case). Sure, Chinese manufacturers can make a good product, but at what actual savings can it be done? And over the stigma of "MADE IN CHINA"?Sorry, but I'm not a fan of out sourcing labor, even if plants in Trollhattan mean some of the most expensive labor. And how many Saabs are actually sold in Asia?
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