Sweden guarantees $600 million loan to Koenigsegg for Saab

2010 Saab 9-5

Swedish automaker Koenigsegg has secured what it needs to make Saab an all Sweden affair once again, courtesy of the Swedish government. The government of Sweden has guaranteed a $600 million dollar loan from the European Investment Bank, which is scheduled to make a final decision regarding the loan by the 21st of October.

A preliminary agreement reached in June, set forth the plan to to purchase Saab from GM, contingent upon the EIB loan. Under the terms of the agreement, GM will continue to feed parts and technology to Saab. Also part of the agreement is a proposed partnership between Koenigsegg and China’s state-owned Beijing Auto that would give the Chinese company a minority interest in Koenigsegg. Beijing Auto is partnered in China with Hyundai and Daimler.

Beijing Auto has proposed to build Saab vehicles in China and and expressed interest in acquiring GM technology for its own vehicles. In the past, Beijing Auto tried to acquire Opel from GM, and Volvo from Ford.

– By: Stephen Calogera

Source: Inside Line