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GM to sell Saab to Koenigsegg

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The Tampa Tribune

Published: June 17, 2009

STOCKHOLM - 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 company that produces only a dozen custom-made super cars a year.

Having penned a memorandum of understanding, GM said the sale would include an expected $600 million funding commitment from the European Investment Bank, guaranteed by the Swedish government. Additional funding for Saab's operations and investments would be provided by GM and the Koenigsegg Group AB consortium, it said.

"This is yet another significant step in the reinvention of GM and its European operations," GM Europe President Carl-Peter Forster said in a statement.

A person briefed on the deal said GM will get nothing initially for Saab, but would be paid $150 million - capital Saab had left over from GM's ownership - on top of the value of Saab's assets if the new company turns a profit. The person, who did not want to be identified because the deal has not been closed, could not estimate the value of those assets.

The Associated Press

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