Tuesday June 16, 09:54 AM
Saab to be bought by Koenigsegg: GM
 |
STOCKHOLM (AFP) - US automaker General Motors (NYSE: GM - news) has signed a tentative agreement to sell its beleaguered unit Saab Automobile to Swedish luxury sports car maker Koenigsegg, GM said in a statement on Tuesday.
"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 (Stockholm: SAABB.ST - news) 's future," GM said.
GM, now in bankruptcy protection in the United States, put Saab up for sale in February as it bids to slim down its range of brands and become profitable again.
The Swedish company has been undergoing a legal reorganisation process since February 20.
Koenigsegg, founded in 1994 by Swedish businessman Christian von Koenigsegg, has just 45 employees and produces 18 high-end sports cars a year for more than a million euros (1.4 million dollars) each.
"Koenigseggs 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 General Motors," GM Europe President Carl-Peter Forster said in a statement.
"Closing this deal represents the best chance for Saab to emerge a stronger company," he said.
The sale, which is expected to close by the end of the third quarter, includes an expected 600 million dollar funding commitment from the European Investment Bank, guaranteed by the Swedish government.
"Additional support is to be provided by GM and Koenigsegg Group to fund Saab's operations and product programme investments," GM said.
The Saab automaker -- not to be confused with a Swedish defence company also called Saab -- sold 93,000 cars worldwide in 2008, according to its website.
It owes 9.7 billion kronor (1.3 billion dollars, 924 million euros) to GM -- its largest individual creditor -- as well as 347 million kronor to the Swedish government. Other creditors are owed 647 million kronor.
Saab Automobile employs about 3,400 people in Sweden, and some 12,000 other jobs in the country are dependent on Saab through suppliers.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
