A Saab by Any Other Name

A Saab by any other name may not be as popular,financing. The original agreement stipulated that
but luckily this luxury auto company will be keeping itsKoenigsegg would receive a loan from the European
name and corporate identity even in the midst of itsInvestment Bank which would be guaranteed by the
buy out by another Swedish automobile company. ThisSwedish government. The Swedish company may still
auto brand is expected to return to the familiar homeneed this loan even with help from anonymous
ground of Sweden when it is bought by luxuryinvestors and General Motors. At the last
European brand Koenigsegg in the very near future.announcement from the chairman of the company,
Koenigsegg reported this week that it is almost doneKoenigsegg was over 423 million dollars short of the
acquiring the financing it needs to buy Saab.amount agreed upon in the purchase agreement.
Koenigsegg will be buying Saab from American carDespite the complications in the financing process,
maker General Motors, which is scaling down to focusKoenigsegg expects the deal be completely finished in
on core brands and eager to rid itself of the bankruptone month. General Motors appears less optimistic,
European car brand. General Motors in turn will help theestimating the closing date of the sale to be closer to
buyer acquire financing from unnamed privatethe end of the year. It is hoped that Saab, which has
investors. This means that Koenigsegg may not needbeen a consistent money loser for General Motors, will
as much money in a loan from the Swedishbe able to flourish under the new European
government to to complete the purchase as it hadmanagement. This agreement has meant the
previously been assumed. According to leakeddifference between Saab filing for bankruptcy as
information from both companies, the purchaseplanned and instead introducing several new models
agreement is expected to be finalized in the nextthis year. Saab will be rolling out a new flagship car and
week and publicly announced soon thereafter.redesigning many of its existing models in an attempt
An earlier deal was reached last month, but it wasto restore wavering sales and customer approval.
never finalized due to questions regarding the uncertain