BAIC Becomes Minority Shareholder in Koenigsegg Group

Koenigsegg Group has just signed a Memorandum of Understanding (MOU) with BAIC that would allow the two companies expand their coverage in both international and Chinese markets. In other words, Koenigsegg Group will benefit from BAIC's Chinese market to sell bring SAAB models in the country while the Chinese carmaker will seek new buyers in Europe with the help of the Swedish partner.

According to the terms of the newly-signed deal, BAIC will become a non-controlling minority shareholder in Koenigsegg Group which will continue to own 100 percent of SAAB. As a result, BAIC will also own a stake in SAAB but, as said, only as a minority entity.

"This is an important step on the road to a new SAAB Automobile. We have a solid business plan, an important partnership and we are now in a position to go ahead without any governmental financing," said Christian von Koenigsegg, CEO of Koenigsegg Group AB.

Koenigsegg last week revealed that it submitted a new financing plan for SAAB which, according to a couple of media reports, does not request more funding from the European Investment Bank.

"Koenigsegg no longer needs any extra loan from the Swedish state but can handle the financing with the help of GM and new investors," a source close to the matter said in the beginning of September. "They have presented us with a plan ... we will look at it from our side and decide how credible it is," State Secretary Joran Hagglund added.

Negotiations between the involved entities are going quite well and Koenigsegg expects to close the deal in the upcoming months.