Officially Official: Koenigsegg reaches agreement to buy Saab
by Sam Abuelsamid on Jun 16th 2009 at 9:26AM 
After days of speculation and rumor, General Motors made it official this morning, Saab will soon be back in Swedish hands. In many respects, this is the most fitting result for quirky brand. Koenigsegg is an oddball itself, building insanely fast supercars in a Scandinavian country where you can't legally drive over about 60 mph.
The deal will be partly financed through a $600 million loan from the European Investment Bank that is co-signed by the Swedish government. Just as GM will continue to provide Penske-owned Saturn with cars for a time, it will supply platforms and powertrains to Saab. The length of time that Saab will continue to use GM hardware hasn't been disclosed, but it will likely be for at least the next 5-6 years – if not longer. The new 9-5 which will be built in Trollhättan, Sweden is launching later this year followed by the 9-4X crossover. Both of these will probably complete their lifecycle on current platforms. The same is likely true for the 9-1 which may launch in 2010 or 2011. The big question mark will be the next generation 9-3, which had been expected to move to GM's Delta II platform.
The Koenigsegg-Saab deal should close by the end of September, and you can check out the official verbiage after the jump.
[Source: General Motors]
PRESS RELEASE:
General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab
# Deal will secure Saab's future
# EIB expected to provide $600 million financing with state guarantee by the Swedish government
# GM reinvention achieves another milestone
Zurich. 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's future.
The sale, expected to close by the end of the third quarter of this year, includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government. Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab's operations and product program investments. This includes plans to launch several new products that are in the final stages of development. Saab had filed for reorganization under Swedish Law on Feb. 20, 2009. This tentative agreement is a key milestone for Saab to successfully emerge from its reorganization process.
"This is yet another significant step in the reinvention of GM and its European operations," said GM Europe President, Carl-Peter Forster. "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."
As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology during a defined time period. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in Trollhättan, Sweden.
"The proposed agreement will enable us to maximize the brand's potential through an exciting new product line-up with a distinctly Swedish character. Today's announcement is great news for Saab's current and future customers, dealers, suppliers and employees around the globe, said Jan Åke Jonsson, Managing Director of Saab Automobile AB.
The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale are not being disclosed at this time. Deutsche Bank acted as financial advisor to General Motors Corporation.
General Motors Corp., one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the U.S., followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. In Europe, GM sells its vehicles in over 40 markets. It operates 10 vehicle-production and assembly facilities in seven countries and employs about 50,000 people. More information on GM can be found at http://media.gmeurope.com and http://www.gmeurope.com. GM Europe executives blog at http://drivingconversations.com.To support informed discussion and fact-based reporting, GM and Opel & Vauxhall have launched a new website at http://gmeuropefactsandfiction.com.
Koenigsegg Group AB is a consortium of private investors led by Koenigsegg Automotive AB. Koenigsegg Automotive AB manufactures supercars. It has representatives in Africa, Asia, Europe, the Middle East, North America, and the Oceania. The company was founded in 1994 and is based in Ängelholm, Sweden.
Reader Comments (Page 1 of 2)
Evan 9:34AM (6/16/2009)
Awesome, awesome, awesome. I'm excited to see what sort of interesting Saabs will be coming about down the line.
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Sam 9:53AM (6/16/2009)
saabs with 800bhp v8s?
CDN Crockett 9:38AM (6/16/2009)
This is great news!
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biggins 11:07AM (6/16/2009)
Now they really WILL be as fast a Jets!!!
Avinash machado 9:44AM (6/16/2009)
Great news. The homecoming of Saab.
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heu240 9:45AM (6/16/2009)
Fantastic! I might actually consider buying a SAAB again (after my Canadian-built, Alfa 169 wears out...)!
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Bobby S. 11:05AM (6/16/2009)
yes! another enthusiastic Canadian waiting for the 169 :D
+1!
Westside T.O. 2:16PM (6/16/2009)
+2
UCJR 11:44AM (6/16/2009)
Maybe the larger Saab manufacturing base and resources will allow Koenigsegg to produce a cheaper supercar (R8-price-range) like McLaren wants to do with the 'P11' they keep teasing us with?
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Alex 9:50AM (6/16/2009)
I am very excited to see what they can start pumping out. Saab was never appreciated as the unique brand that it is by GM.
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Sean Flanagan 9:55AM (6/16/2009)
I am absolutely thrilled that this is official. Christian von Koenigsegg is a true car lover; he can only bring great things to Saab.
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Steve Lopez 10:35AM (6/16/2009)
Finally!
Saab can get back to the business of selling its cars.
Maybe the 3 door hatchback will come back.
Saab lot its roots.
GM never helped this division.
Good luck to them and the money can pay off some of GM debt.
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John R 9:58AM (6/16/2009)
Maybe now there'll be some competitive SAABs now.
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Avinash machado 10:00AM (6/16/2009)
Get lost spammer.
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Redeemed 10:03AM (6/16/2009)
I've always liked Saab. GM could have done more to build on their safety heritage and make them more up scale like Volvo. I hope they have brighter days ahead.
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Nick 10:40AM (6/16/2009)
You just know this has fail written all over it.
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Jared 11:10AM (6/16/2009)
I hope Saab does well, but I'm skeptical. The premium and near-premium auto market is crowded with better funded makers that already have better products. Saab will be saddled with two manufacturing plants and is currently selling less than 1/2 of what just one of those plants can build. I simply don't see how they can survive for long.
Richard S. 10:46AM (6/16/2009)
Running a relatively large car manufacturer will not be as easy as running a small volume exotic car manufacturer. Koenigsegg will find many more aspects of production and marketing than they are used to.
On the other hand, SAAB at least will have someone who will really have the dedication of churning out good products for the consumer. Hopefully Koenigsegg takeover of SAAB will herald better times ahead akin to Steve Jobs returning to Apple.
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P.V. 10:48AM (6/16/2009)
Amazing news! I want to see some great stuff come out of this deal.
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UH2L 10:55AM (6/16/2009)
Although the brand was mishandled, if it weren't for GM, Saab probably wouldn't be around. It's ironic that now that Koenigsegg owns Saab instead of GM, people will start considering Saabs again. They'll go to the dealer to test drive them and realize that they've been competitive, fun-to-drive products all along. In fact, one of my Mazda 3 driving friend is now considering Saabs whereas he wouldn't have before. If this happens enough, the resale value of my Saabs may improve.
All that aside, after Knsg. stops using GM-supplied products, how the heck are they going to engineer and develop a full portfolio of products when all they make are ultra low volume exotics? They better start hiring and buying plants.
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