Swedish sportscar maker Koenigsegg is to rescue Saab with funds from the European Investment Bank guaranteed by the Swedish government, General Motors Europe announced on Tuesday.
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Koenigsegg Group, a consortium led by Koenigsegg Automotive, confirmed it had signed a memorandum of understanding to purchase Saab Automobile.
The sale, expected to close by the end of the third quarter of this year, includes an expected US$600m funding commitment from the EIB.
GM and Koenigsegg Group will provide additional funds for Saab’s operations and new product plans including several new models now in the final stages of development.
“Saab had filed for reorganisation under Swedish law on 20 February, 2009. This tentative agreement is a key milestone for Saab to successfully emerge from its reorganisation process,” GME said in a statement.
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By GlobalData“This is yet another significant step in the reinvention of GM and its European operations,” said GME president, Carl-Peter Forster. “Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company.
“Koenigsegg Group’s unique combination of innovation, entrepreneurial spirit and financial strength, combined with [its] proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors.”
GM said it would continue to provide Saab with architecture and powertrain technology for an unspecified time. Saab plans to produce a long overdue redesigned 9-5 model at its main production facility in Trollhättan, Sweden.
“The proposed agreement will enable us to maximise the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe, said Jan Åke Jonsson, managing director of Saab Automobile.
GM noted that the planned sale would be subject to the usual closing conditions and regulatory approvals. No other terms and conditions were disclosed.
