General Motors and Saab have agreed
General Motors has finalized its agreement with the “mini” Swedish carmaker Kynigzeg (Koenigsegg Automotive) for Saab (Saab), today writes “The Financial Times”.
According to previously agreed terms, Americans will continue to provide technological Saab for a certain period of time as far Kyonigzeg commit to a modest amount as an investment in the brand, reported the newspaper’s unnamed sources close to negotiations on the deal.
Both companies are expected to sign the agreement in principle today. The Swedish government is to approve loan guarantees, and to find other sources of funding.
According to the Memorandum of Understanding signed in June, the European Investment Bank (EIB) has agreed to grant 600 million euros of guarantees against Sweden, recalls the publication.
General Motors and failed to win from the Swedish brand, as sales are very weak. Last year were made only 98 000 cars.
Kyonigzeg founded in 1994 by entrepreneur Christian von Kyonigzeg makes custom luxury car for around 1 million each. The company has a modest capacity, and this raises doubts whether she can cope with the problems of Saab.
Saab launched the procedure for reorganization and separation from General Motors on February 20 this year. Cabinet of Sweden, however, refused a rescue loan to the company and await the restructuring plan of the American owner of the luxury brand.