SWEDEN’S KOENIGSEGG, maker of some of the world’s most expensive sports cars, has struck a deal to buy loss-making Saab Automobile from General Motors, the companies said yesterday.
In one of the most unlikely pairings in automotive history, the tiny sports car firm of 45 staff is expected to take over a company that employs around 3,400 staff, a cherished Swedish brand that is a national icon for stability and reliability.
GM Europe said on its website the deal included an expected $600 million of financing from the European Investment Bank, which would be guaranteed by the Swedish government. Other terms were not disclosed.
“Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab’s operations and product programme investments. This includes plans to launch several new products that are in the final stages of development,” GM Europe said.
Like its US parent, Saab has been in bankruptcy protection and GM Europe said the accord was a milestone in the Swedish company’s effort to emerge from the process.
Koenigsegg, which produces some of the world’s most powerful roadcars, came out of nowhere to emerge as a front-runner to buy Saab.