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Shanghai car maker to join Saab deal: report

TT/The Local · 8 Sep 2009, 09:15

Published: 08 Sep 2009 09:15 GMT+02:00

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“We are working on it and going through the details, but in general it looks promising,” Jöran Hägglund, State Secretary at the Swedish Ministry of Enterprise, Energy and Communications, told TT news agency.

Halldora von Koenigsegg of Koenigsegg Automotive said the company will make a public announcement as soon as possible, but does not want to make a statement at this time.

According to business daily Dagens Industri, Chinese car manufacturer SAIC, Shanghai Automotive Industry Corporation, may also become an investor, in addition to GM, which has already pledged a contribution of almost 3 billion kronor ($423 million) in loans and production equipment.

The financial package increases Saab's chances of securing a loan from the European Investment Bank (EIB), according to Hägglund.

“The addition of private capital was necessary to move forward,” he said.

Hägglund believes that the EIB's board is likely to evaluate Saab's loan application at its next meeting on October 21st. Saab wants to borrow the equivalent of almost 4 billion kronor ($564 million) to develop new technology in the areas of environment and security.

Discussions are ongoing about whether or not Saab's loans would be guaranteed by the Swedish government, according to Hägglund.

Koenigsegg Group has previously said that 11 billion Swedish kronor ($1.5 billion) are needed to close the Saab deal.

Story continues below…

Three weeks ago, Koenigsegg announced that they were short 3 billion kronor and they wanted to obtain an additional government loan, something which has now been completely ruled out.

“It has been understood that there is no such possibility and that it should be handled in another manner,” Hägglund said.

TT/The Local (news@thelocal.se)

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Your comments about this article

12:54 September 8, 2009 by Great Scott
What are we to believe here,

"Koenigsegg Group has previously said that 11 million Swedish kronor ($1.5 billion) are needed to close the Saab deal. "

Do Koenigsegg not know the difference between millions and billions, or is it bad media reporting once again.

11,000,000 SEK = 1,563,274 USD

Or am I just plain stupid.

Also come to think of it, shouldn't it be "Is needed" and not "Are needed"
13:23 September 8, 2009 by falcon
It appears Koenigsegg has been a front for the Chinese all along. Why should Sweden fund a company owned by the Chinese state? Koenigsegg don't have the funds or ability to fix the Saab. This is hilarious.
14:32 September 8, 2009 by Great Scott
Just goes to show the people at the Local do read the comments, and they have corrected accordingly.

But still don't know if it was Koenigsegg or the Local with the wrong information, but I can guess.
21:36 September 8, 2009 by Leprehcaun
I'm not sure what to say.. this is so sad.. bye saab. The right wing can never be allowed to be in power again, if the left wing had been in power now both volvo and saab would be 0% Chinese owned.
22:24 September 14, 2009 by spy
Another naive leftie. . . . .
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