GM seals deal to sell Saab to Koenigsegg

STOCKHOLM: General Motors Corp on Tuesday said it has signed a final agreement to sell all shares in its unit Saab Automotive to Sweden's Koenigsegg Group AB, confirming the preliminary deal revealed in June. (Watch)

GM said the contract is subject to the conditions that Saab receives the necessary funding commitments from the European Investment Bank, guaranteed by the Swedish government, and transitional assistance from GM.

``We will continue to work with all parties to define the final details and ensure a fast closure of the deal, which we expect to take place in the next few months,'' said Carl-Peter Forster, president of GM Europe.

GM also said it will continue to share technology and services with Saab during ``a defined time period,'' and that Saab is close to launching several new cars developed with GM.

The financial details of the deal weren't disclosed. Koenigsegg Group in June announced its intention to buy the ailing Swedish car brand from its U.S. owner. The consortium is led by the Swedish luxury car maker Koenigsegg Automotive AB, Norwegian investor Baard Eker and Augie K. Fabela II, co-founder and former chairman of Russian telecom operator VimpelCom.

Saab's managing director, Jan Ake Jonsson welcomed the news. ``This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all new Saab 9-3X,'' he said in a statement.