GM sells Saab to sports-car maker Koenigsegg

0 Comments | AFP, June, 2009

STOCKHOLM (AFP) — Fallen US auto giant GM said on Tuesday it is selling its beleaguered Saab unit to Swedish luxury sports car firm Koenigsegg, ending a 20-year tie-up which brought only a single annual profit.

"General Motors Corp. and Koenigsegg Group AB, a consortium led by Koenigsegg Automotive AB, today confirmed the details of a memorandum of understanding for the purchase of Saab Automobile AB that secures Saab's future," GM said.

GM, now in bankruptcy protection in the United States, put Saab up for sale in February as it tried to cut loose a series of underperforming assets in a major restructuring programme but failed to find a buyer.

Saab has been under reorganisation process since February 20.

Koenigsegg, founded in 1994 by Swedish businessman...