Saab Needs Money Despite Koenigsegg Takeover

Most of us thought that once Koenigsegg takes over the Swedish ailing brand Saab things will become easier for GM's unit but it just seems like problems are far from being over for the company. According to a report by autocar.co.uk, Saab needs additional money from the local government as the automaker is still unsure how much money the new owner plans to invest into its own business.

Maud Olofsson, Sweden’s industry minister, revealed that loans from the European Investment Bank (EIB) would be crucial for the future of the automaker.

“We still don't have any information about the amount of money they are willing to invest. And that is a key point. The other is the ability to lead the company," Olofsson said. “If it would turn out that they need loan guarantees in order to get a credit from EIB, then they should come to us. But it might not be necessary. You can't just assume that the government will be involved in this.”

GM Europe President, Carl-Peter Forster, said in mid-June when announcing the deal that Koenigsegg has the potential to help the Swedish brand.

“This is yet another significant step in the reinvention of GM and its European operations. Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company. 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."