It's Official: General Motors Selling Saab to Koenigsegg

GM issued a statement saying the agreement "will secure Saab's future" and saying the deal "includes plans to launch several new products that are in the final stages of development." GM is to continue to supply architecture and powertrain technology during a "defined time period" that was not specified.

General Motors' statement said the European Investment Bank will commit some $600 million, underwritten by the Swedish government, to help the deal go through. However, it did not put a price to the overall sale, saying it won't be completed until the end of the third quarter of this year. Saab has been under creditor protection since February 20.

A Swedish news service says the Koenigsegg buyout means the supercar specialist's Quant electric concept from the 2009 Geneva Auto Show will go into production. Citing an unnamed source, the Realtid news service says the car will be manufactured in Saab facilities, using solar technology from the Swiss firm NLV Solar. The source also says the new owner plans to continue producing the Saab 9-3 and 9-5 in Sweden, the 9-4X will be built in Mexico, and the company will target increasing production to 150,000 vehicles per year by 2011. Saab sold some 93,000 vehicles last year. General Motors' statement confirmed that the next-generation 9-5 will be built at Saab's Trollhättan facility in Sweden.

Meanwhile, Automotive News reported today that GM is asking the 220 U.S. Saab dealerships to sign a proposal by Friday, although reportedly the agreements won't guarantee they will get to continue as Saab dealers.

Inside Line says: An interesting idea to imagine Saab as a Tesla fighter. What really will happen with Saab is going to be a matter of intense speculation at least for a few more weeks, but clearly the well-loved Swedish brand will go on. — Laura Sky Brown, Correspondent