Official Press Release: General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab

Posted on 16. Jun, 2009 by in 2000-2009

General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab.

Finally, official confirmation!

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.

CONTACT(S):

GM Europe
Chris Preuss
+41 44 828 25 00
jchristopher.preuss@gm.com

Saab Automobile AB
Eric Geers
Tel: +46 (0) 520 27 97 97
eric.geers@gm.com

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No Responses to “Official Press Release: General Motors and Koenigsegg Group AB Reach Tentative Agreement on Saab”

  1. Frank Rush

    16. Jun, 2009

    I never considered GM a good shepherd for Saab nor a match in ethics or quality. The two operating philosophys did not match and the Saab brand suffered. This will make Saab a truly unique and fun car to drive again.

    Reply to this comment
  2. Webb Cooley

    16. Jun, 2009

    I guess the Koenigsegg boys are going to recall the past e-mails about how they are not going to buy SAAB!
    I think this great and can’t wait for the first SAAB under Koenigsegg – how about a CCX-Sonett – one can hope.

    Reply to this comment
  3. Bill

    16. Jun, 2009

    GM said:

    “As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology during a defined time period.”

    What type of power-train technology would Saab want other than what GM stole from them over the past 20 years.

    I suppose there is a downside to every agreement.

    Other than the “crazy aunt” (GM) meddling in your affairs this is wonderful news. A bright future for Saab is on the horizon!

    Bill

    Reply to this comment
  4. anonymous

    16. Jun, 2009

    dreams do come true 🙂 A lot of work to do, but motivation could not be possibly higher 🙂

    Reply to this comment
  5. Ryan

    16. Jun, 2009

    All agreed here. 🙂

    Another great day for Saab!

    R

    Reply to this comment

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