GM’s Saab to be sold

Posted: June 14, 2009 in News, Saab

It looks as if GM will unload Saab, its underperforming Swedish premium brand, to Swedish supercar-maker Koenigsegg, in conjunction with a group of Norwegian investors. This marks GM’s third move to rid itself of a non-core car brand, after its proposed sales of Hummer to a Chinese machinery company and Saturn to Penske.

Sources told The Financial Times that Koenigsegg made “the best overall offer,” though no details are yet available other than word that the deal will be completed sometime early this summer. GM has pledged $500 million in assets and cash for the new company.

The Swedish supercar-maker sold just 18 cars last year, but it wants to apply its high-end know-how to a high-volume car-manufacturing operation.

Saab hasn’t turned a profit since GM bought a stake in it back in 1990. Sales peaked at 133,000 units in 2006. Perhaps Koenigsegg will have better luck.

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