DETROIT — The Associated Press (AP) has reported that General Motors (GM) has signed an agreement to sell the Saab division to Koenigsegg Automotive AB, a small Swedish carmaker that produces only about 12 custom-made models each year. The company, founded in 1994 by Chief Executive Christian von Koenigsegg, makes customized vehicles that are reportedly valued at $1 million to $2.3 million each. Saab produces roughly 100,000 cars annually.
The sale of Saab to Koenigsegg is expected to close by the end of the third quarter and will be funded by a $600 million commitment from the European Investment Bank.
If the deal is meets all regulatory approvals, Koenigsegg Automotive AB would hold a 23.4 percent stake, Christian von Koeningsegg’s firm Alpraaz AB would hold 42.6 percent, Norwegian holding company Eker Group would have a 11.8 percent stake and San Diego-based Mark Bishop would hold 22.2 percent, according to the AP report.
