A picture of GM has a tentative deal to sell Saab to supercar maker Koenigsegg. Shown is the 2009 Saab 9-3 convertible. 
General Motors confirmed Tuesday morning that it has a tentative agreement to sell Saab to a group led by Swedish supercar maker Koenigsegg Automotive.
The deal would close by the end of the third quarter and put Saab in the hands of an upstart, boutique car company known for producing eye-catching cars with gaudy horsepower ratings and even gaudier price tags.
The agreement includes $600 million in financing from the European Investment Bank. The money would be backed by the Swedish government. GM would continue to support Saab with underpinnings and technology for its cars during the transition.
Saab has been in the Swedish equivalent of bankruptcy since Feb. 20, and GM filed for bankruptcy June 1 in the United States.
Saab has struggled under GM ownership, losing money and struggling for a niche in the crowded U.S. marketplace and within the Detroit automaker’s own crowded brand hierarchy. GM bought a 50 percent stake in Saab in 1989 and bought the entire firm in 2000.
Saab did enjoy a period of prosperity in the 1980s in the United States under the under the leadership of Bob Sinclair, who added content to the cars and helped move the brand into premium status. Saab long has had a cultlike status among some enthusiasts for turbo performance, design and safety. The 900 Convertible, launched in 1986, was an icon.
The Koenigsegg CCX |
Koenigsegg produces two products in extremely low volume, the CCX and the CCXR. The CCXR can make as much as 1,018 hp when running on E85, and both cars sell for more than $1 million. The cars are among the fastest in the world and often are compared with Bugatti. Koenigsegg was founded in 1994.
The deal could be a curious paring, as Saab is one of Sweden’s flagship manufacturers and sold 93,295 cars around the world last year. Koenigsegg made 18, according to Automotive News.
GM Europe president Carl-Peter Forster said in a statement that the potential deal gives Saab a fresh start and a chance to stage a comeback.
“This is yet another significant step in the reinvention of GM and its European operations,” Forster said in a statement. “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.”
Automotive News contributed to this report.
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