Volvo to buy Saab UPDATE Saab Automobile, General Motors Corp.'s struggling Swedish unit known for its family cars, was rescued Tuesday by a consortium led by Koenigsegg Automotive AB, a tiny luxury carmaker which produces only a dozen custom-made models a year.
GM said in a memorandum of understanding that the sale would include an expected $600 million funding commitment from the European Investment Bank, guaranteed by the Swedish government. Additional funding for Saab's operations and investments would be provided by GM and Koenigsegg Group AB, it said.
The sale is expected to be completed by the end of the third quarter and is subject to regulatory approvals by authorities.
"This is yet another significant step in the reinvention of GM and its European operations," GM Europe President, Carl-Peter Forster, said in a statement. "Closing this deal represents the best chance for Saab to emerge a stronger company," he said, adding "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg's proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors." 06/15/09 According to business daily Dagens Industri, Volvo Cars will become part-owner of Saab if sports car maker Koenigsegg wins the race. It has turned out that Volvo holds a small stake in Koenigsegg.
The company, founded by Christian von Koenigsegg in 1994 to produce high-performance cars, has signed a declaration of intent to buy General Motor's crisis-hit car manufacturer Saab, according to a number of media sources.
During the years Christian von Koenigsegg has paid several employees and suppliers with stock shares in the public but not listed company. In early 2000 Koenigsegg hired a wind tunnel to perform tests in Volvo’s facilities. In return Volvo was paid 3,750 stocks in Koenigsegg. For that reason Volvo still appears on the list of owners, according to Euroclear, a provider of settlement and related services for bond, equity, fund and derivative transactions.
Koenigsegg’s largest owner is Norwegian Bård Eker, via the holding company Eker Group, with 49 percent of the votes, followed by Christian von Koenigsegg. In Marsh there were 111 owners of the company.
Volvo’s stakes are worth about 8,000 kronor (€760), according to Dagens Industri’s calculations.
Clearly, the tiny ownership share in Koenigsegg is not of any major importance to Volvo.
“I don’t know of any holdings [in Koenigsegg] and I haven’t been able to find any information”, said Volvos spokesperson Stefan Elfström to the newspaper.