General Motors to sell Saab to Sweden's Koenigsegg

17 June 2009

The world's latgest bankrupt auto giant, General Motors (GM), which for seven decades had been the world's largest automaker, has finally found a suitor for its loss-making Saab Automobiles AB, which it is divesting as part of its turnaround startegy by divesting all its non-core assets.

Sweden's Koenigsegg Group AB, a consortium lead by exclusive high performance supercar marque Koenigsegg Automotive AB, has agreed to a preliminary deal yesterday to buy Saab, the troubled GM unit which filed for bankruptcy protection in February under the Swedish law.

Terms and conditions of the deal have not been disclosed, although GM said the sale would include an expected $600 million funding commitment from the European Investment Bank, guaranteed by the Swedish government.

Additionally, GM and Koenigsegg Group AB will aid Saab's operations and product development.

The acquisition is expected to be completed by the third quarter of 2009, subject to all regulatory and court approvals which will bring an end to GM's ownership of Saab for almost two decades.

GM Europe president Carl-Peter Forster said, "Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company''