Koenigsegg Pulls Out of Saab Deal, GM to Kill the Brand?

After months of negotiations and rumors regarding Saab's future, Koenigsegg finally decided to terminate the agreement for purchasing the Swedish brand. Unfortunately, General Motors is yet to make a decision on Saab's fate so the brand might be after all discontinued just like in the case of Pontiac and Saturn.

The US-based parent company confirmed the report and said that a final decision on Saab is to be made next week. It hasn't mentioned, however, what is the reason for Koenigsegg pulling out of the deal.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson. "Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."

Back in June, Koenigsegg signed a preliminary agreement with General Motors for the Saab acquisition. Under the terms of the deal, the European Investment Bank was expected to provide $600 million financing with state guarantee by the Swedish government. Additionally, GM was projected to continue providing engines and parts for several other models to be launched in the upcoming years.

“The proposed agreement will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe," said at that time Jan Åke Jonsson, Managing Director of Saab Automobile AB.