REPORT: Saab deal between GM and Koenigsegg finalized
2010 Saab 9-5 - Click above for high-res image gallery
The deal has been signed, but the cash still hasn't changed hands. In a nutshell, that's where the share transfer agreement between GM and Swedish manufacturer Koenigsegg sits. Those close to the deal say the two companies have agreed on a very low price for Saab, but the exact figures are still undisclosed.
One towering hurdle in front of the deal is financing – the consortium, led by Koenigsegg Group, has yet to completely lock down funding as it is waiting on a hefty 4.3 billion kronor (about $593 million) loan from the European Investment Bank. The money won't be cleared unless the Swedish government secures it. Needless to say, there are countless other smaller hurdles (including word of investors backing out) that need to be knocked over before the deal is sealed. As of now, GM expects Saab to exit bankruptcy reorganization "shortly" and will share technology and services with Koenigsegg for a "defined time period" that has yet to be disclosed but should last at least a generation cycle as a number of new models that were developed by GM, including a redesigned 9-5 (above), are just about to launch.
Gallery: 2010 Saab 9-5 Leaked Again
[Source: Swedish Wire, General Motors]
PRESS RELEASE
General Motors and Koenigsegg Group Sign Stock Purchase Agreement for the Sale of Saab Automobile AB
- The deal is expected to close by year's end and will secure Saab's future
- The closing will be subject to funding agreements and other closing conditions
- Saab Automobile plans to exit reorganization shortly
Zurich. General Motors Co. today confirmed it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab Automobile AB. The deal is expected to conclude in the next months and will then secure Saab's future. Saab Automobile plans to exit legal reorganization shortly.
The stock purchase agreement will be subject to agreed closing conditions. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. Saab is about to launch several new cars, developed with General Motors, that are in the final stages of development.
As part of the proposed transaction, GM and Saab will continue to share technology and services during a defined time period. This will be managed through licenses and service agreements.
"This contract is an important step in the journey to a potential deal, said Carl-Peter Forster, president of GM Europe. "Saab's great cars, its unique design, safety- and engine-technology, as well as its excellent brand image, combined with Koenigsegg Group's unique combination of innovation and entrepreneurial spirit, bode well for a successful future for the brand. We will continue to work with all parties to define the final details and ensure a fast closure of the deal, which we expect to take place in the next few months. The closure of the deal is contingent on the funding commitment from the European Investment Bank (EIB), guaranteed by the Swedish government," Forster added.
"We have now concluded another important step in realizing the great potential of Saab," said Christian von Koenigsegg, CEO of Koenigsegg Group. "Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it 'sustainable' by making it profitable. We will revive Saab's Swedish heritage of ecological sensitivity, safety, design innovation and 'fun to drive' experience!"
Jan Åke Jonssson, Managing Director of Saab, said: "This is excellent news for everyone connected to Saab around the globe. This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all new Saab 9-3X."
Reader Comments (Page 1 of 1)
DJ_Swammi 12:09PM (8/18/2009)
Never noticed how the chrome window trim stops at the top of the c-pillar. Ick.
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Level 1:00PM (8/18/2009)
Who would of thought Koenigsegg go figure and this comes to mind, If GM is willing to share technology with Koenigsegg why not share technology with who ever wants to buy OPEL? They don't see Saab or Koenigsegg as a treat I guess......
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Tom Miller 1:41PM (8/18/2009)
They call Koenigsegg a "luxury car maker," but just because their cars are expensive doesn't mean they are luxurious. They do the same with makers like Ferrari.
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martinez 8:07PM (8/18/2009)
For intelligent people luxury is not determined by how much faux gold, wood and leather there is. Purchasing and owning one is luxury, so it's a luxury car.
P.V. 8:23PM (8/18/2009)
Awesome. I'm waiting for the new products pipeline!
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Patrick 10:22PM (8/18/2009)
Wow, they sell a diesel Buick with three pedals...
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chan625 8:26AM (8/19/2009)
I liked the alloys and the fact that they are essentially aero makers.....no wonder they dont really try to get into main stream
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Rick 11:59AM (8/19/2009)
Such a disappointing car.
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