GM signs agreement to sell Saab

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.

With a full-time staff of 45, Koenigsegg makes around a dozen cars a year, customized for every buyer. The company doesn’t advertise prices for its models, but they are believed to range between $1 million and $2.3 million each.

Saab, on the other hand, has more than 4,000 staff worldwide, is represented in some 50 countries, and typically produces more than 100,000 cars a year.

Excerpts from "Marketing Daily" of Around the Net in Brand Marketing

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