General Motors has today announced that Swedish supercar manufacturer Koenigsegg is the current front runner to buy out GM’s struggling Saab brand.
As we reported last week, Koenigsegg has been interested in Saab for some time. We suspect the reason is to have a mass production facility to build its upcoming electric car under the Saab umbrella, giving the company access to the worldwide market in the near future.
According to reports on Swedish television, Koenigsegg alongside Norwegian investors have recently signed a letter of intent to take over Saab. GM had already given up on Saab in February of this year when it put the Swedish brand into the equivalent of bankruptcy and cut ties that go back two decades.
Currently GM is undergoing a massive restructuring process which means shedding Saab, Hummer and Saturn. The old GM also gave up trying to sell its medium-duty truck business this week and announced its termination.
According to the Financial Times the successful buyer has an interesting contract to deal with. As part of the deal GM will provide US$500 million in assets and cash, plus production equipment for a new Saab model. GM will also leave the US$150 million of cash already in Saab’s account as is.
Koenigsegg will have to put in a similar amount of money (although reports say it could be less) and if it’s successful in turning Saab around it will pay GM back the US$500+150 million.
The electric car Koenigsegg is expected to release next year is called the Quant. A project between Koenigsegg and NLV Solar AG. The car is claimed to manage 500 kilometres on a 20 minute charge, if Koenigsegg can bring even half of that promise to the market with a new Saab model, we will see a lot more Saabs on the road in the near future!
For more information on the Quant click here.