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]

After a considerable amount of secrecy surrounding the next generation Saab 9-5, it seems as though the cat is finally out of the bag. Two German publications (Autobild and Autozeitung) have published what appear to be official Saab press photos of the 2011 9-5.

Normally a new Saab doesn’t get much attention, but with the pending sale of the company by General Motors to Swedish supercar maker Koenigsegg, there is a great deal riding on the new model. If the 9-5 succeeds, Saab will succeed. And if it doesn’t, well, it will be tough to keep funding the niche-market automaker.

The exterior of the car is certainly traditional Saab style, which means it isn’t likely to appeal to a much wider audience. The interior, however, is impressive with a nicely-designed center stack, a push-button ignition and available rear seat LCD screens.

The next Saab 9-5 is expected to be a 2011 model, with sales starting in 2010. With pictures already emerging we’d expect that car’s official debut at this Fall’s Frankfurt Auto Show, however, the Geneva Auto Show would certainly be more neutral ground for a Swedish automaker.

GALLERY: 2011 Saab 9-5

[Source: Autobild and Autozeitung via Motivemag]

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.

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General Motors has made the surprising decision to sell its Saab brand to Swedish supercar maker Koenigsegg. The move comes as such a shock because the two other final bidders were wealthy and mainstream American entities: the Wyoming investment group Merbanco and U.S. billionaire Ira Rennert’s Renco Group.

Koenigsegg, on the other hand, is a little-known (and unpronounceable) builder of million-dollar exotics, some of which make over 1,000hp – like the CCXR pictured above.

Swedish news reports indicate Koenigsegg and a group of Swedish investors have signed a letter of intent with General Motors.

Bloomberg is also reporting the news and according to a source familiar with the deal, Koenigsegg was chosen because of it is an auto manufacturer and because it is committed to the Swedish brand.

According to the Financial Times, the deal will see General Motors provide $500 million in both cash and assets, as well as production equipment for a new model. Saab will also get to keep the $150 million it currently has banked. Koenigsegg and the three investors will only have to pay GM back if they succeed in making Saab a profitable automaker.

The sale of Saab is the final step for General Motors in its corporate reorganization that will see the company reduced from eight brands to just four. GM recently agreed to sell its Hummer brand to Chinese industrial machine manufacturer Tengzhong and has arranged to sell its Saturn brand to the Penske Automotive Group. The Pontiac brand is scheduled to be mothballed at the end of 2010.

[Source: Automotive News]

It seems like there is a new update in the Saab and Saturn sell-off every day… so why stop now. Yesterday we reported that the list of Saab buyers was down to three and now that list has been shortened to just two suitors.

Saab CEO Jan-Ake Jonsson told Swedish business paper Dagens Industri that there are now just two parties in the running. He also said that the final negotiations could happen as early as this week.

“This can go fast now and should absolutely be wrapped up in a maximum of two weeks,” he said in a report.

Fiat has recently denied rumors that it was interested int he purchase of the Saab brand and so that leaves Swedish supercar maker Koenigsegg and the U.S.-based Renco Group.

[Source: Reuters]

With news of a tentative deal to sell off Hummer coming yesterday, GM still hasn’t made any decisions about its Saturn or Saab brands – but apparently it has plenty of offers to entertain.

GM CFO Ray Young said that Saturn has as many as 16 suitors, while the Swedish Saab brand has three.

The list of Saturn buyers is reported to include Penske Automotive Group, Malcolm Bricklin, Mitsubishi, Nissan/Renault and investment firm Telesto Ventures.

Young did say that it is interested in working with the Saturn buyer when it comes to vehicle assembly.

As for Saab, Swedish business paper Dagens Industri is reporting that the three buyers are U.S. financier Ira Rennert and his Renco Group, Fiat and Swedish supercar maker Koenigsegg.

[Source: Detroit Free Press and Reuters]

In a surprising move, a potential buyer for Saab has been found from the company’s home country. Nope… note Swedish automaker Volvo, but Swedish supercar maker Koenigsegg.

The news comes from the newspaper Dagens Industri and is so surprising because of Koenigsegg’s mass-market obscurity.

Koenigsegg has, however, made a success out of its supercar business, selling machines like the CCX and 1,000 horsepower CCXR (pictured above), for over one million dollars.

It is expected that were Koenigsegg to be a contender in the bidding process it would likely need one or more partners, and with the supercar maker’s client list including some of the world’s wealthiest people, partners might not be all that hard to find.

Saab has yet to officially announce a list of buyers and did not comment on the Dagens Industri report.

[Source: Channel4]

[Photos Credit: CarStudio.it]