GM Confirms Saab Sale Deal With Koenigsegg

The Saab Aero X

The Saab Aero X

On August 18 General Motors Co. (GM) confirmed that they have reached a stock purchase agreement to transfer its loss-making Swedish unit Saab Automobile AB to a group led by Koenigsegg Automotive AB.

Car designer Bård Eker from Fredrikstad, Norway owns 49 percent of Swedish Koenigsegg, which manufactures exclusive sports cars.

Koenigsegg, including the Eker Group of Norway, has raised 70 percent of the needed financing, but still needs to put up SEK 3 billion more. The Swedish government, which is offering loan guarantees to keep Saab afloat, said there is still much to be done. GM reportedly will maintain an interest in Saab through preferred shares that could be swapped for shares in the new Saab Automobile.

Tuesday’s agreement between GM and Koenigsegg Group AB will breathe new life into Saab, said Paul Akerlund, who represents the IF Metall union at Saab.

Read more on CNN

Norwegian American Logo

The Norwegian American

The Norwegian American is North America's oldest and only Norwegian newspaper, published since May 17, 1889.