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GM to fill Saab funding hole: report

TT/Stuart Roberts · 2 Sep 2009, 10:37

Published: 02 Sep 2009 10:37 GMT+02:00

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Saab’s current owner, General Motors, will also stump up three billion kronor ($412 million) to fill the funding hole.

The paper’s information reportedly came from a source close to the deal. Koenigsegg Group, which has been pressing the Swedish Government over the last two weeks for top-up funding in order to save the company, has stated that it can now complete the deal without government assistance.

"Koenigsegg Group no longer needs additional financing from the Swedish state due to securing financing with the help of GM and new investors,” said the source.

The new settlement may be presented as soon as next week. Saab requires approximately 11 billion kronor ($1.5 billion) before the company can begin to operate profitably, according to the Koenigsegg Group. Current owner GM has already contributed 2.8 billion kronor ($385 million) in the form of a loan and through paying for production equipment for the new Saab 9-5. The Koenigsegg Group has contributed 720 million kronor.

Story continues below…

The company also hopes to secure a loan from the European Investment Bank of around 5 billion kronor. In order to secure that loan the company will require a guarantee from the Swedish Government.

TT/Stuart Roberts (news@thelocal.se)

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Your comments about this article

12:29 September 2, 2009 by usgepo
Hurrah! at least is not our tax money being thrown away, if the investors want to take the risk let them, god help this poor souls, they have no idea what kind of crooks they are dealing with!
13:06 September 2, 2009 by ooh456
What? GM sells the company because they can't afford to operate it / see no future in it.... and then they turn around and invest in the new company? I smell a rat.
13:20 September 2, 2009 by Leprehcaun
Well that's great! :D

First I disliked >GM because of the numerous screw ups with Saab. Selling it to KG made me overlook that but this makes me really really like that company. I hope the Trollhättan factory will raise an American flag for a while.
17:22 September 2, 2009 by Roaringwater
why are they crooks? just because somebody tries to buy a company doesn't mean there's anything sinister in it.....
17:54 September 2, 2009 by Rolf100
since GM is owned by the United States Taxpayer - you may want to thank them for the gift!
19:45 September 2, 2009 by mkvgtired
Rolf100, exactly. After receiving $50 Billion in bailouts you would think there would be stipulations about making large dollar "investments".
21:05 September 2, 2009 by skane refugee
SAAB auto has negative value (i.e. someone has to be paid to take the company on) ... glad it's not the Swedish taxpayer ponying up more money ... we're already on the hook for substantial loan guarantees ...

GM has probably just calculated that injecting another USD385m is cheaper than the full costs (including negative PR) of closing SAAB for good
21:35 September 2, 2009 by falcon
Koenigsegg doesn't have their own money and GM is funding most of the deal. Saab suppliers are nervous, Canada dealers were cancelled, and US dealers can't take any Saab orders. Sales are at rock bottom.

GM should have sold Saab to someone with money + experience who could make it work and give comfort to the government. This would be hilarious if it wasn't a disaster.
00:11 September 3, 2009 by 2394040
I wouldn't be a bit surprised if China was involved in this. The interesting thing will be how much longer Saab remains in Sweden. And I wouldn't wager, just yet, that Swedish tax money won't eventually be involved as well.

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