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GM signs agreement to sell Saab

Posted Tuesday, Jun 16, 2009, 2:37 pm in Employee News

Saab Automobile, General Motors Corp.’s struggling Swedish unit known for its family cars, was rescued Tuesday by a consortium led by Koenigsegg Automotive AB, a tiny luxury carmaker which produces only a dozen custom-made models a year, the Associated Press reported.

GM said in a memorandum of understanding that the sale would include an expected $600-million funding commitment from the European Investment Bank, guaranteed by the Swedish government, the AP reported. Additional funding for Saab’s operations and investments would be provided by GM and Koenigsegg Group AB, the story said.

The sale is expected to be completed by the end of the third quarter and is subject to regulatory approvals by authorities, the AP said. The company behind the consortium, Koenigsegg Automotive, was founded in 1994 by Christian von Koenigsegg, a Swedish sports car fanatic and entrepreneur, who remains the chief executive. It makes luxury sports cars at its headquarters, a former air force base near Angelholm, in southern Sweden, the story said. (Associated Press/Detroit Free Press)
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