GM seals deal to sell Saab to Koenigsegg

GM said Tuesday it signed an agreement to sell its unit Saab Automotive to Sweden's Koenigsegg Group, confirming an announcement in June, although government officials warn that more capital is needed before the deal can be closed. GM said the deal is subject to a funding commitment for Saab from the European Investment Bank, to be guaranteed by the Swedish gov't. "Koenigsegg Group should add more private capital, negotiate loans with the EU Investment Bank, as well as agree with the Swedish National Debt Office about conditions for potential state credit guarantees," said Joran Hagglund, from the ministry. "For these, an approval from the European Commission is also needed." Earlier, GM said it expected $600M from the European bank, but Hagglund said amount was uncertain since it depends on how much the company is prepared to contribute. He said a significant amount of private capital was needed but gave no figure. Swedish business daily Dagens Industri reported Koenigsegg Augie Fabela believes about 3B kronor ($412M) was still needed, in addition to an the Euro bank loan. "We will continue to work with all parties to define the final details & ensure a fast closure of the deal, which we expect to take place in the next few months," he said. The EIB promised to lend Europe's auto industry a total of euro16B ($21B) for development of greener solutions & production, & was expected to handle Saab's app for a loan in Sept. It's not immediately clear how much Saab would apply for. GM said it will continue to share tech & services with Saab during "a defined time period," & that Saab was close to launching several new cars developed with GM. In June announced its intention of buying the ailing Swedish car brand from its owner. A consortium is led by the Swedish luxury carmaker Koenigsegg Auto, Norwegian investor Baard Eker and Fabela II, co-founder & former chairman of Russian telecom operator VimpelCom. Saab's managing dir., Jan Ake Jonsson, welcomed the news. "This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all-new Saab 9-3X," he said.