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Funding could be last step in sale of Saab to Koenigsegg Group
Saab has secured a $610 million loan from the European Investment Bank after the Swedish government said it would stand behind the loan.
This may just be the last step in finalizing the sale of Saab to a group of investors headed by Swedish supercar maker Koenigsegg. The sale of Saab by General Motors to the Koenigsegg group was thought to be in jeopardy, as additional funding to invest in future Saab products was required.
Koenigsegg has said it is looking for additional investors in the company and recently announced that China’s Beijing Auto would become a partial investor.
Keonigsegg has said it hopes to finalize the sale wth General Motor by the end of October.
GALLERY: 2011 Saab 9-5
Deal contingent on additional investment, bank loans
General Motors has signed an agreement to sell off its Swedish Saab unit to the Koenigsegg Group. Led by supercar maker Koenigsegg, the group includes several additional investors. The deal will see the Koenigsegg Group take a 100 percent stake in Saab.
In a statement Koenigsegg Group CEO Christian von Koenigsegg said that the group plans to “transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable.”
The deal is still contingent on additional funding, which Koenigsegg plans to raise through government loans and additional investors. According to a report in the Swedish newspaper Dagens Industri, a Koenigsegg Group executive said that the company requires $413.6 million in additional investments. Currently the Swedish government is reviewing a plan to secure a loan from the European Investment Bank.
Both Koenigsegg and General Motors seem to have differing opinions on how long it will take for the funding issue to be solved. Koenigsegg spokeswoman Halldora von Koenigsegg said she expects funding to be secured by in a month, while the less-optimistic GM is reported to have the end of 2009 pegged as a deadline to finalize the sale.
Additional specific terms of the agreement are not known, but it is expected that GM will supply the Koenigsegg Group with resources to assist in developing one additional model. Currently Saab is set to launch its latest model, the 2010 9-5 (pictured above) at the Frankfurt Auto Show.
[Source: Automotive News]