Koenigsegg to buy SaabJune 16, 2009
Koenigsegg, the manufacturer of small volume supercars, looks set to buy Saab.
This strange marriage should hopefully produce some interesting offspring. Saab and Koenigsegg, both Swedish companies, have developed biofuel vehicles, incentivised by the Swedish government’s aim to be fossil-fuel-free by 2020.
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.
Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab’s operations and product programme investments. This includes plans to launch several new products that are in the final stages of development.
Saab had filed for reorganisation under Swedish Law in February. This tentative agreement is a key milestone for Saab to successfully emerge from its reorganisation process.
Koenigsegg Group AB is a consortium of private investors led by Koenigsegg Automotive AB, which was founded in 1994 in Sweden.
“This is yet another significant step in the reinvention of GM and its European operations,” said GM Europe President, Carl-Peter Forster. “Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company. 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.”
As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology during a defined time period. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in Trollhättan, Sweden.
“The proposed agreement will enable us to maximise the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe, said Jan Ĺke Jonsson, Managing Director of Saab Automobile AB.
The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale are not being disclosed at this time.