GM Sells Saab Brand

GM has been negotiating to sell the Saab brand to a Swedish company Koenigsegg Automotive AB. Koenigsegg is a Swedish manufacturer of high-performance sports cars based in Angelholm, Sweden. Koenigsegg along with some Norwegian investors have signed a letter of intent to purchase the Saab brand...with the sale to be consummated within several weeks.

Most people are not aware of the name....the company was founded in 1994 by Christian von Koenigseff, with the sole purpose of creating a world class supercar. The first street-legal production car was delivered in 2002.

Apart from developing manufacturing and selling the Koenigsegg line of supercar, Koenigsegg is also involved in "green technology" development programs. This enabled Koenigsegg to produce the CCXR - "Flower Power" flexfuel supercar as an example.


Koenigsegg is also active in development programs when it comes to plug-in electrical cars systems and next generation combustion engine technologies. Koenigsegg would be able to help Saab with the developement green technologies in their autos.

Koenigsegg holds a number of patents in the engine development area. In March, the Koenigsegg CCXR shown was chosen by Forbes to be one of the ten most beautiful cars in history.

Saab Declares Bankrupcy

Many of the worlds auto manufacturers are in financial trouble due to the severe decline in auto sales. Today, Saab was the first auto manufacturer to declare bankruptcy. The Supervisory Board of Saab decided that bankruptcy was the solution and notified the 4000 employees how the company will continue to operate. The filing is apparently similar to a Chapter 11 filing in the United States, which allows the organization protection from the creditors while allowing the company to restructure.

Shown below is a 2008 Saab 9-3, which is Saab's most popular model.

Sweden's government had turned out a bailout request from the parent corporation GM. GM has indicated in the court filing that the company "would not fund further the projected losses of the company (Saab)." It appears that GM and the Swedish government are playing a game of chicken. Unfortunately, a high number of jobs are on the line if this does not work out.

Last year Saab lost about 3 billion Swedish crowns ($340.1 million) and anticipates that 2009 would lose about the same amount. Saab Managing Director Jan-Ake Jonsson indicated that they will continue to explore all available options for funding and or selling Saab, it was determined that a formal reorganization would be the best way to create a truly independent entity that is ready for investment.