GM Green-Lights Koenigsegg to Buy Saab
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]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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With this purchase of SAAB by Koenigsegg, who will be servicing my SAAB here in the Sacramento, California area? Also, when will this take effect?
Your SAAB dealer will continue to service your vehicles. SAAB is not going away. It's just a change of ownership.