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GM agrees Saab sale to Koenigsegg | GM agrees Saab sale to Koenigsegg |
(40 minutes later) | |
General Motors has reached a tentative agreement to sell Saab to the Swedish sports car manufacturer Koenigsegg. | General Motors has reached a tentative agreement to sell Saab to the Swedish sports car manufacturer Koenigsegg. |
GM said that as part of the deal there would be $600m (£367m) of funding from the European Investment Bank (EIB), guaranteed by the Swedish government. | GM said that as part of the deal there would be $600m (£367m) of funding from the European Investment Bank (EIB), guaranteed by the Swedish government. |
It is the latest part of GM's reorganisation, which is also set to see the Opel and Vauxhall brands going to Canada's Magna. | It is the latest part of GM's reorganisation, which is also set to see the Opel and Vauxhall brands going to Canada's Magna. |
Saab filed for reorganisation under Swedish law on 20 February. | Saab filed for reorganisation under Swedish law on 20 February. |
Koenigsegg produces 18 cars a year and employs 45 people and there has been some doubt as to whether it has the expertise to run Saab, which sold 93,000 cars in 2008. | |
But GM Europe's president Carl-Peter Forster said: "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength... made it the right choice for Saab as well as for General Motors". | But GM Europe's president Carl-Peter Forster said: "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength... made it the right choice for Saab as well as for General Motors". |
GM revamp | |
The statement from GM did not say how much is being paid for the unit. The sale is expected to be completed by the end of September. | |
Koenigsegg specialises in the luxury end of the car market | |
GM said it would continue to provide technology to Saab "during a defined time period". | GM said it would continue to provide technology to Saab "during a defined time period". |
GM currently has bankruptcy protection in the US and is slimming down its range of brands as it tries to regain profitability. | |
Saab employs about 3,400 people in Sweden and about 12,000 other jobs in the country are dependent on Saab and its suppliers. | |
The Swedish government has been keen to avoid bailing out its carmakers as long as they are owned by US parent companies. |