General Motors Co is talking to BAIC, China's fifth largest car maker, about a partial sale of assets associated with its Saab brand, including tooling and technology, two people with direct knowledge of the discussions said.

Beijing Automotive Industry Holding Group has made it clear that it has no interest in acquiring Saab's production hub in Trollhattan, Sweden, according to the people who could not be named because the talks remain private.

Under the proposed deal, BAIC, which lacks its own car brand, would set up production in China based on an older generation of Saab vehicles, including the 9-5 and 9-3 models, the people said.

The partial sale of Saab technology to BAIC would likely clear the way for a liquidation of other assets held by the brand, including its headquarters and could threaten more than 3,000 Saab jobs in Sweden.

At the same time that GM is talking with BAIC, it is also vetting several other bidders that have expressed an interest in buying all of Saab, the sources said. (Editing by Carol Bishopric)

China Sale