After striking an initial deal in June, General Motors has reportedly inked an agreement to sell its Swedish Saab brand to supercar maker Koenigsegg. The deal will see GM signing over 100 percent of Saab’s shares to Koenigsegg.
The latest news marks a significant step forward in GM’s move to unload its unprofitable Saab brand. The Detroit automaker put the Saab brand up for sale shortly before filing for Chapter 11 bankruptcy.
“This contract is an important step in the journey to a potential deal,” GM Europe President Carl-Peter Forster said in the statement. “We will continue to work with all parties to define the final details and ensure a fast closure.”
Although the stock purchase agreement is a positive step forward in the sale of the Saab brand, the deal still has a few obstacles to overcome. The Swedish government is currently backing Koenigsegg for a loan from the European Investment Bank, but the Swedish supercar maker will need the backing of more investors. Koenigsegg will reportedly need about $413 million more on top of its loan from the EIB, according to Automotive News.
However, the sale of Saab should be completed in the near future. Koenigsegg has indicated it expects the Saab sale to be wrapped up by September, but GM is aiming to have things finished closer to year’s end.
