What will Koenigsegg Group AB buy from GM?”
STOCKHOLM (Dow Jones)–Swedish boutique supercar maker Koenigsegg Group AB has reached an agreement to acquire General Motors Corp.’s (GMGMQ) Saab Automobile AB unit for an undisclosed sum, the companies said Tuesday. “Closing this deal represents the best chance for Saab to emerge a stronger company,” said GM Europe President Carl-Peter Forster. Saab, part of GM since 2000, was put up for sale earlier this year as part of GM’s efforts to return to profitability. Saab has been loss-making for several years and has suffered an even sharper drop in sales than the other brands being sold or closed in GM’s reorganization. Just 783 Saab models were sold in the U.S. during May, a fall of 64% and less than the Hummer truck brand being offloaded to Chinese investors. May sales in Europe slumped 66% to 2,191 last month, according to data released Tuesday. Last year, Saab sold a little less than 94,000 cars. It employs about 3,400 workers, most at its main factory in Trollhattan in southwestern
General Motors Corp. on Tuesday said it has signed a deal to sell its Saab unit to a consortium led by Swedish luxury sports carmaker Koenigsegg Automotive AB. The memorandum of understanding, sent out in a statement from GM, said the sale would include an expected $600 million funding commitment from the European Investment Bank which is guaranteed by the Swedish government. Any additional funding for Saab’s operations and product investments will be provided by GM and Koenigsegg Group AB. The sale is expected to be completed by the end of the third quarter. “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. “Closing this deal represents the best chance for Saab to emerge a stronger company,” he said, adding “Koenigsegg Group’s unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg’s proven ability to create world-class Swedish perf
Koenigsegg Automotive AB, a maker of $1.2-million high-performance sports cars, won the bidding for General Motors Corp’s Saab Automobile AB unit, returning the automaker to Swedish control after almost two decades. The sale is tied to a $600-million loan by the European Investment Bank that’s backed by the Swedish government, General Motors spokesman Chris Preuss said by telephone today. GM agreed to provide engine and other technology for a limited time. The companies didn’t provide financial details of the deal.
