Koenigsegg to Buy SAAB from GM

General Motors Corp. on Tuesday said it has signed a deal to sell its Saab unit to a consortium led by Swedish luxury sports carmaker Koenigsegg Automotive AB.

The memorandum of understanding, sent out in a statement from GM, said the sale would include an expected $600 million funding commitment from the European Investment Bank which is guaranteed by the Swedish government. Any additional funding for Saab's operations and product investments will be provided by GM and Koenigsegg Group AB.

The sale is expected to be completed by the end of the third quarter.

"This is yet another significant step in the reinvention of GM and its European operations," GM Europe President, Carl-Peter Forster, said in a statement. "Closing this deal represents the best chance for Saab to emerge a stronger company," he said, adding "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg's proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors."

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Nelson Silveira, a GM spokesman in Zurich, told the Associated Press that no pricetag had yet been made official, since the announcement was only a memorandum of understanding.

On Monday, public documents showed that Koenigsegg Automotive AB had applied to start a new company named Koenigsegg Group -- fueling speculation that a takeover of Saab was in the pipeline.

Silveira could not provide details of the consortium backing up Koenigsegg.

Saab went into creditor protection Feb. 20 in an effort by GM to sell the unit. Interested bidders reportedly also included private equity firm The Renco Group Inc. and investors Merbanco Inc.