STOCKHOLM, Sweden, June 16, 2009
GM Sells Saab Brand To The Swedes
Consortium Led By Luxury Carmaker Koenigsegg Buys Brand For Undisclosed Amount
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In this Jan. 12, 2009 file photo, a Saab sign is seen at the North American International Auto Show in Detroit. (AP Photo/Paul Sancya)
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Timeline General Motors A look at major dates in the history of the now-troubled auto company
The memorandum of understanding, signed Tuesday by Saab and GM, said the sale includes an expected $600 million funding commitment from the European Investment Bank and is guaranteed by the Swedish government. Additional funding will be provided by GM and Koenigsegg Group AB.
The pricetag was not disclosed and the sale is expected to be completed by the end of the third quarter.
Saab went into creditor protection Feb. 20 in an effort by GM to sell the unit. Interested bidders reportedly also included private equity firm The Renco Group Inc. and investors Merbanco Inc.
Documents made public on Monday showed the luxury Swedish car maker Koenigsegg Automotive AB had applied to start a new company named Koenigsegg Group, fueling speculation that it was close to the takeover of Saab.
In an application to the Swedish Companies Registration Office, Koenigsegg lists shareholders in the new company as itself, its owner Christian von Koeningsegg's company Alpraaz AB, Norwegian investment company Eker Group, as well as San Diego-based Mark Bishop.
Koeningsegg would own 23.4 percent of the shares in the new company, Alpraaz 42.6 percent, Eker Group 11.8 and Mark Bishop 22.2 percent, according to the papers made public on Monday.
"The object of the Company shall be to, either directly or indirectly through the Company and its subsidiaries, engage in the production and sale of passenger cars and thereto related products and services," Koeningsegg wrote in the application.
According to reports Thursday by Swedish television, Koeningsegg was the last remaining bidder in the process to buy Saab.
Saab spokeswoman Gunilla Gustavs said Monday that a deal with a new owner would be announced shortly, but declined to elaborate.
Detroit-based GM filed for bankruptcy protection June 1 and has said it plans to shed its Saturn, Hummer, Pontiac and Saab brands to focus on four core brands: Chevrolet, Cadillac, Buick and GMC.
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- Wow, now this is a non-brainer...
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- I wonder how the Puppets at GM feel about Obama ordering them to sell Saab...
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- SAAB deserves to stand on it's own. GM never embraced the technology/styling/performance that SAAB brought to them. Hopefully now, SAAB will have more of a presence in the States than they do now. They deserve it!
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- Good for SAAB! Best car I have ever owned. (Not when GM owned it--but when the Swedes built it the first time around.)
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