If things proceed as expected, the controversy around the future of Saab will be resolved in time for the reveal of the Saab 9-5 model next week at the Frankfurt Auto Show.
The Koenigsegg Group has secured the additional financing needed to complete the acquisition of Saab Automobiles from the General Motors Corporation, insiders close to the deal told TheDetroitBureau.com today.
Tomorrow morning in Europe Koenigsegg will issue a release identifying a new investor, which should allow the deal to close next month, according to our sources.
GM has not thus far been able to close the sale of its Saab, Opel, Hummer or Saturn brands as part of its reorganization and paring.
Press reports coming out of Sweden say that the Swedish government confirms it is scrutinizing a new financing package, but won’t reveal any details.
However, it is likely to reverse its previous opposition to the plan announced by General Motors less than a month ago because more private equity is involved, diminishing the perception that the Swedish government is subsidizing the rich backers of the exotic car maker.
What remains to make the deal go through is a loan from the European Investment bank, and Swedish government loan guarantees.
If things proceed as expected tomorrow, the controversy surrounding the future of Saab will be resolved in time for the reveal of the Saab 9-5 model next week at the Frankfurt Auto Show.
Saab filed for reorganization under Swedish Law on 20 February 2009, after GM said no more funding would be provided for the loss-making operation. As part of the plan, Saab said its design, engineering and manufacturing would be consolidated in Sweden.
A prototype of the 2010 Saab 9-5, bearing the unmistakable imprint of the Aero X show car, will make its debut at Frankfurt next week, with the actual sedan due to hit showrooms late in 2010.
Like the Aero X, the new 9-5features wraparound glass and a gently tapered roofline. There’s also the Saab signature “hockey stick” beltline. The overall look falls somewhere between the hatchback styling the Swedish company was once known for and a more traditional “three-box” sedan. Conditions that must be met to close the sale include funding of more than $600 million from the European Investment Bank with Swedish government loan guarantees, and transitional assistance from GM, as Saab becomes independent.
Saab is about to launch several new cars developed with General Motors that are in the final stages of development. As part of the proposed transaction, GM and Saab will continue to share technology and services during an unspecified time period. The technology sharing will be managed through licenses and service agreements.
Tiny Koenigsegg Automotive makes a few limited-edition exotic sports cars each year. It has sales representatives in Africa, Asia, Europe, the Middle East, North America, and Oceania. The company was founded in 1994 and is based in Ängelholm, Sweden.
“Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable. We will revive Saab’s Swedish heritage of ecological sensitivity, safety, design innovation and ‘fun to drive’ experience,” Christian von Koenigsegg, CEO of Koenigsegg Group said last month.
The Saab bankruptcy announcement came on the eve of the Geneva Auto Show last March where Saab unveiled the 2010 9-3X model, one of three new models (9-5, 9-3X and 9-4X) due to appear during the next 18 months. In a previous announcement GM CEO Fritz Henderson also said that under the terms of the MOU he expects GM to build the new mid-size 9-4 crossover model for Koenigsegg and continue to supply powertrains. The 9-4 is now in production in Ramos Arizpe, Mexico. It is closely related to the Cadillac SRX.