ZURICH, Switzerland — General Motors Corp. and
Koenigsegg Group AB, a consortium led by Sweden-based automaker Koenigsegg
Automotive AB, today confirmed a tentative agreement for
the purchase of Saab Automobile AB that secures the brand'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 Carl-Peter Forster, GM Europe president. “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.
