Signed, sealed, and (hopefully) soon to be delivered: GM and Koenigsegg reach agreement over Saab
After months of negotiations – including an almost deal-breaking episode – General Motors and Koenigsegg have finally reached an agreement over the transfer of the much-maligned Saab brand from the American auto giant to the Swedish supercar makers. GM confirmed that it had reached a stock purchase agreement, transferring Saab to its compatriot, Koenigsegg. While this is the latest significant step undertaken by both parties, the completion of the deal is still subject to a number of issues, not the least of which is how Koenigegg will go about financing this deal.
While the agreement certainly clears up a few potential stumbling blocks, Joran Hagglund, the Swedish government’s main liaison to the auto industry, remains cautious saying that, "The most decisive factor" is whether Koenigsegg can raise additional capital required.” One of the last remaining hurdles before the completion of this sale is finalized is Saab’s loan request, which is estimated at around 500 million Euros, and whether the Swedish government can commit to granting this loan without making any intention of providing state support to the beleaguered auto brand.
In any event, the final decision on whether Saab gets the loan will be handed out when the EIB reconvenes on September 22. In the mean time, the agreement of transfer between GM and Koenigsegg marks as the biggest step undertaken by both brands in completing this deal as soon as possible.