Old SAABs Ã¢â‚¬Â¦ made from planes with propellers.Enlarge Photo
The bidding for GM's Saab division has finally reached a conclusion, with a Swedish consortium lead by supercar manufacturer Koenigsegg announced as the final buyer for the struggling automaker. General Motors has been looking for a buyer for Saab since late last year, as it tried to cut brands and steer clear of bankruptcy. As it filed Chapter 11 earlier this year, GM said it would dispose of Saab by the end of the year, and that it had three bidders interested in taking over the brand, in which it initially invested in 1990 and later took complete control.
Today, GM confirmed that it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab. The deal is expected to conclude in the next months and will then secure Saab’s future, with the Swedish automaker set to exit legal reorganization shortly. The stock purchase agreement will be subject to agreed closing conditions, namely, the guarantee of funding commitments from the Swedish government, as well as transitional assistance from GM.
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.
GM has also reportedly set aside $500 million in assets and cash to fund Saab's consolidation at its Trollhattan, Sweden facility. That price includes setting up production of the Saab 9-3X as well as the Saab 9-4X crossover, and the coming 2010 Saab 9-5 sedan, the long-awaited replacement for the brand's largest four-door.
The GM funding will be paid back by the new owners if they can turn Saab around. If they can, they will be the first to show a profit at Saab in more than 15 years.