After the February announcement that General Motors was planning on dumping Saab, the American parent appears to have come to terms with a suitor. supercar manufacturer Koenigsegg has agreed to take on the Swedish brand.
Both parties have signed a memorandum of understanding, with anticipation of the deal closing by the end of September. Terms of the deal include $600 million in financing provided by the European Investment Bank, and secured by the Swedish government.
Saab operations will continue in full, thanks to funding from both Koenigsegg and GM. Because of this, Saab intends to continue with the launch of "several new products that are in the final stages of development." In addition to GM continuing to provide platforms for the time being, Saab plans on building the next generation Saab 9-5 in Trollhättan, Sweden. The new 9-5 is due for a Frankfurt introduction later this year. The larger 9-5 should be about six inches longer, with a wide variety of powerful engines, all-wheel drive, and LED taillights.
What is uncertain is if these future plans include bringing the Koenigsegg Quant electric concept closer towards production. Koenigsegg is believed to be excited about the 500 kilometer-range vehicle's potential, especially considering its reported recharge time of 20 minutes.
The supercar manufacturer also plans to ramp up Saab production to 150,000 units per year by 2011, up from 20,000. That reason alone could have been enough to win the backing of the Swedish government, as jobs that could have been at risk now have a better chance of being safeguarded, provided the outcome of Saab's in-court reorganization.
With this sale moving forward, Koenigsegg will be keen to avoid mistakes made by other manufacturers in the past. The merger between Daimler and Chrysler saw the combination of a performance vehicle automaker with a volume seller. Significant problems arose when the German car company showed strong reluctance at sharing technology with their high-volume American counterpart.
Of the deal, Saab Managing Director Jan Åke Jonsson said, "Today's announcement is great news for Saab's current and future customers, dealers, suppliers and employees around the globe."
GM Announce Tentative Agreement to Sell Saab to Koenigsegg
But what will happen to the new 9-5?
By Zack Newmark
June 16, 2009 2:45 PM
Filed Under: European, General Motors, Koenigsegg, Saab
Press Release (Click to expand)
- 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.
Comments
Scarcliff
June 16, 2009 3:19 PM
lelu
June 16, 2009 3:41 PM
vertigobike
June 16, 2009 3:22 PM
tom43
June 16, 2009 4:01 PM
Edited by user on June 16, 2009 at 4:04 PM
MutantSushi
June 16, 2009 10:24 PM
So I hardly see why they would "die" in 2-3 years.
Certainly, developing all platforms/ components themselves would be uneconomical, but there is no reason they couldn't continue their relation with GM, or strike up a new one with BMW/ Peugeot/ Ford/ Toyota/ etc. The BIG manufacturers are doing this all the time between THEMSELVES - So it's not like KoenigSaab (?) would have a hard time finding larger manufacturers willing to share platforms/components.
rsrtampa
June 16, 2009 4:14 PM
sovietmole
June 16, 2009 4:17 PM
Bristol411S3
June 16, 2009 4:28 PM
I hope to be proved wrong of course...
rsrtampa
June 16, 2009 8:04 PM
MutantSushi
June 18, 2009 6:00 AM
Edited by user on June 18, 2009 at 6:00 AM
Razz
June 16, 2009 9:03 PM
TheKing
June 17, 2009 11:15 AM
wjaprep
June 20, 2009 3:54 AM
ANYWEIGH, Im glad Saab is going bck to Swedan where it belongs. culd this mean no more Trailblazers and more 3 door/5 door Saabs? XD
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as for the Quant, id really like to see that 20 minute recharge 500 Km rage vehicles technology put into further and better cars if not completely improved. i mean if they braught the re-charge time of an electric car down to lets say 2 - 3 minutes then im sure car companys wouldnt hesitate to make more electric cars and it would be easyer to re-charge them from some sort of electric petrol station.