General Motors announced today that it has reached a preliminary agreement to sell its loss-making Saab brand to supercar manufacturer Koenigsegg. GM did not release any details on the price tag of the agreement but said that the sale will include guaranteed financing by Sweden.
“The sale, 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,” GM said in a statement. “Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab’s operations and product program investments.”
“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,” said GM Europe President, Carl-Peter Forster.
As part of the memorandum of understanding, GM will continue to provide Saab with architecture and powertrain technology during a defined time period that it did not specify. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in TrollhÃ¤ttan, Sweden.
Koenigsegg, founded in 1994, has 45 employees and output of only a handful of cars a year.
– By: Omar Rana