Selling Saab

General Motors plans to sell Saab to the Koenigsegg Group, a consortium led by Koenigsegg Automotive, a Swedish manufacturer of sports cars.


Troubled US auto-giant General Motors hopes to sell Saab to the Koenigsegg Group, a consortium led by Koenigsegg Automotive, an Ängelholm (Sweden) based manufacturer of sports cars.


The sale includes a $600m (£364.7m) commitment in funding from the European Investment Bank (EIB) that will be guaranteed by the Swedish government.


Additional support will be provided by General Motors and Koenigsegg to fund Saab’s operations as well as to help launch several new products that are in the final stages of development.


Saab had previously filed for reorganisation under Swedish law on 20 February 2009.


The tentative agreement between the company and Koenigsegg is seen as key to its successful emergence from the reorganisation process.


As part of the proposed transaction, General Motors will continue to provide Saab with its technology over a defined time frame.


The sale, expected to close by the end of the third quarter of this year, will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals.