STOCKHOLM—On Tuesday, Koenigsegg Group AB signed a declaration of intent with General Motors Corp. to purchase the ailing classic Swedish automaker Saab Automobile AB.
Purchase price and details have not been disclosed.
A declaration of intent is not the same as a sealed deal, as negotiations are still ongoing, but according to the online issue of Swedish magazine Teknikens Värld, details will be ironed out by the end of this summer.
Koenigsegg, a Sweden-based maker of high-performance sports cars, was founded in 1994 by then 22-year old Christian von Koenigsegg.
The Swedish government will guarantee Saab’s loans, and the European Investment Bank would also provide approximately US$580 million in support. GM and Koenigsegg will also provide financing.
Saab currently has plans for several new car models in the final stages of development. A certain amount of cross-product cooperation between GM and Saab will continue, according to Teknikens Värld.
Jan Åke Jonsson, CEO of Saab Automobile AB said after the deal was publicized, that he felt very optimistic about Saab’s opportunity to develop under the new owner.
Reactions among Saab employees and union representatives were mostly positive—a deal was finally struck, which gives hope for the future of the company and its employees, especially in Trollhättan, a city in southwest Sweden where Saab’s major facilities are located.
Analyst reactions, on the other hand, were mixed. Some were downright thrilled over this unexpected turn of events and the prospect of a self-made Swedish entrepreneur running Saab, and believe this is an interesting new chapter in the company’s history.
Others pointed to the economic problems the Koenigsegg brand has struggled with and indicated that very little is known about the financial backing behind the new consortium and what their plans are. Some even believe this may be the end of Saab.
Koenigsegg has 50 employees and builds around 20 cars per year. Last year Koenigsegg reported roughly US$13 million in revenues and a profit of US$120,000. In 2008, Forbes Magazine listed the Koenigsegg CCXR as one of the ten most beautiful cars ever.
Purchase price and details have not been disclosed.
A declaration of intent is not the same as a sealed deal, as negotiations are still ongoing, but according to the online issue of Swedish magazine Teknikens Värld, details will be ironed out by the end of this summer.
Koenigsegg, a Sweden-based maker of high-performance sports cars, was founded in 1994 by then 22-year old Christian von Koenigsegg.
The Swedish government will guarantee Saab’s loans, and the European Investment Bank would also provide approximately US$580 million in support. GM and Koenigsegg will also provide financing.
Saab currently has plans for several new car models in the final stages of development. A certain amount of cross-product cooperation between GM and Saab will continue, according to Teknikens Värld.
Jan Åke Jonsson, CEO of Saab Automobile AB said after the deal was publicized, that he felt very optimistic about Saab’s opportunity to develop under the new owner.
Reactions among Saab employees and union representatives were mostly positive—a deal was finally struck, which gives hope for the future of the company and its employees, especially in Trollhättan, a city in southwest Sweden where Saab’s major facilities are located.
Analyst reactions, on the other hand, were mixed. Some were downright thrilled over this unexpected turn of events and the prospect of a self-made Swedish entrepreneur running Saab, and believe this is an interesting new chapter in the company’s history.
Others pointed to the economic problems the Koenigsegg brand has struggled with and indicated that very little is known about the financial backing behind the new consortium and what their plans are. Some even believe this may be the end of Saab.
Koenigsegg has 50 employees and builds around 20 cars per year. Last year Koenigsegg reported roughly US$13 million in revenues and a profit of US$120,000. In 2008, Forbes Magazine listed the Koenigsegg CCXR as one of the ten most beautiful cars ever.
