GM Announces Official Yet Tentative Deal to Sell Saab to Koenigsegg

GM Announces Official Yet Tentative Deal to Sell Saab to Koenigsegg

General Motors has officially announced it has reached a tentative deal to sell its Swedish Saab brand to a group of companies lead by Swedish supercar-maker Koenigsegg.

The deal will see the Koenigsegg group receive $600 million in funding from the European Investment Bank, which has been guaranteed by the Swedish government.

GM will provide Saab with platform and powertrain technology for an undisclosed period of time, while Saab is set to begin production of the next generation 9-5 in the near future at its plant in Trollhättan, Sweden.

“The proposed agreement will enable us to maximize 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 Ake Jonsson, Managing Director of Saab.

“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.”

Koenigsegg’s acquisition of Saab is expected to be completed by the third-quarter of this year.

Official:

General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab

  • Deal will secure Saab’s future
  • EIB expected to provide $600 million financing with state guarantee by the Swedish government
  • GM reinvention achieves another milestone
  • Zurich.  General Motors Corp. and Koenigsegg Group AB, a consortium led by Koenigsegg Automotive AB, today confirmed the details of a memorandum of understanding for the purchase of Saab Automobile AB that secures Saab’s future.

    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 program investments.  This includes plans to launch several new products that are in the final stages of development.  Saab had filed for reorganization under Swedish Law on Feb. 20, 2009. This tentative agreement is a key milestone for Saab to successfully emerge from its reorganization process.

    “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 maximize 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 Åke 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.  Deutsche Bank acted as financial advisor to General Motors Corporation.