Luxury sportscar maker Koenigsegg Automotive has presented the Swedish government with a new plan for financing its purchase of Saab Automobile from General Motors, backed by an unnamed Chinese investor.
State secretary Joran Hagglund told Reuters the plan no longer involved any extra loan from the Swedish state on top of guarantees for funding from the European Investment Bank (EIB). He added that the Government would now study the plan and “decide how credible it is”.
Sweden’s Dagens Industri business daily reported late last night that a Chinese car manufacturer has stepped in to fill a SEK3bn (US$420m) gap in financing for the purchase, citing an unnamed source as saying the investor comes from within GM’s circle of partners in China.
The newspaper added that there was a big possibility that this could be Shanghai Automotive Industry Corporation (SAIC).
Hagglund said the Swedish government was still negotiating with Koenigsegg on a possible guarantee for a loan to Saab from the EIB, funds which are seen as vital for the Koenigsegg deal to go through as well as for Saab’s survival.
Koenigsegg struck an accord in June to buy Saab backed by US and Norwegian investors. Last month GM and Koenigsegg said they had a deal ready but questions regarding financing remained. Koenigsegg chairman Augie Fabela was quoted as saying that the group also needed an additional SEK3bn of financing in addition to the EIB loan.