GM Announces Deal with Koenigsegg on SAAB Sale

General Motors officially announced today that it reached a preliminary agreement to sell its Saab division to a consortium led by Swedish sports car maker Koenigsegg. The deal that is expected to close by the end of the third quarter of this year includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government, while GM said that it plans to support Saab's new owner. General Motors did not provide any specific finance details on the sale.

As part of the agreement, the American automaker will continue to provide Saab with architecture and powertrain technology during a defined time period while GM said that the next generation 9-5 Sedan and Station Wagon models will be produced in the Saab production facility in Trollhattan, Sweden.

"This is yet another significant step in the reinvention of GM and its European operations," said GM Europe 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 Koenigsegg's 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."

Koenigsegg Reported to Have Agreed to Buy SAAB, Officials Says No Comment

Citing anonymous sources, Sveriges Television AB, or SVT for short, reported on its website that Swedish sports car maker Koenigsegg has agreed to buy GM's loss-making premium brand, Saab. "The buyers have signed a letter of intent to buy Saab. Final negotiations on the details of the deal will continue over the next few months," SVT said on its website. However, Saab spokeswoman Gunilla Gustavs told CNN that the report by the Swedish television station is "speculation from other channels, and I can't comment on speculation." We'll keep a close on the story and inform you for any new developments.

Sources: SVT and CNN - Hat tip to David N.!

Koenigsegg Among the Remaining Bidders for GM's SAAB Division

According to a report from the Swedish financial daily newspaper, Dagens Industri, Sweden's own supercar builder Koenigsegg, is one of the three remaining parties interested in buying General Motors' SAAB brand. The newspaper said that the other two suitors for GM's Swedish arm are Fiat S.p.A that has also made a bid for Opel and Vauxhall, and the Renco Group, a New York City-based holding company controlled by U.S. billionaire Ira Rennert. Citing unnamed sources close to GM, the paper said that the "toughest battle is expected between the Renco Group and Koenigsegg."

Dagens Industri noted that the Swedish automaker's chief executive, Christian von Koenigsegg, declined to confirm or deny the newspaper report.

In April, Saab officials told a Swedish court, which granted the company an extension of its reconstruction period, that they expect to have completed the sale by the end of June.

Via: Reuters