GM sells SAAB to Koenigsegg Automotive

This is a company known to produce very few custom-made supercars each year and their introduction into the family car segment is viewed with cynicsm but GM needs to ensure that the brand survives and the customers happy, hence the agreement.

According to GM, the memorandum of understanding was signed where some US600million funding commitment from the European Investment Bank is expected. This is guaranteed by the Swedish government which is set to ensure that Saab returns to its original homeland.

Carl-Peter Foster, the Europe division president of GM said "This is yet another significant step in the reinvention of GM and its European operations,"

Saab was sold to GM for US600million in 1990 where they controlled some 50% stake and 10 years later would take over the rest of the shares for another US125million. The buyer this time, Koenigsegg Automative is owned and headed by Christian von Koenigsegg who started the company in 1994 where they customized sports cars for the buyer. Each car are believed to cost about US1million to US2.3 million each depending on the features and modifications. They have in their company 45 staff, way short off form the 4000 Saab staff globally that roll out more than 100,000 cars annually. Koenigsegg, who is a sports car lover and a successful entrepreneur is confident that innovation and entrepreneurship could drive the brand forward saying that "We understand that it is a great challenge, but for various reasons we believe there is potential to develop this long-term,"