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WEDNESDAY, NOVEMBER 25, 2009
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GM Sells Saab to Tiny Swedish Custom Automaker

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(AP) – Saab, the struggling Swedish company owned by GM, was rescued today by a consortium led by Koenigsegg Automotive AB, a tiny luxury automaker that produces only a dozen vehicles a year. GM said the sale would include an expected $600 million funding commitment from the European Investment Bank, guaranteed by the Swedish government. With a full-time staff of just 45, Koenigsegg makes cars customized for every buyer, believed to cost between $1 million and $2.3 million apiece.

Saab, on the other hand, has more than 4,000 staff worldwide, is represented in some 50 countries, and typically produces more than 100,000 vehicles a year, most of them family cars. Saab's CEO called the deal "great news" and said it would help the brand to maximize its potential "through an exciting new product lineup with a distinctly Swedish character."

The Koenigsegg factory, seen, in Angelholm, Sweden, Friday, June 12, 2009.
The Koenigsegg factory, seen, in Angelholm, Sweden, Friday, June 12, 2009.   (AP Photo/Anders Andersson, Scanpix)
Saab vehicles are for sale at a car dealer in Pasadena, Calif. on Friday 15 May 2009.
Saab vehicles are for sale at a car dealer in Pasadena, Calif. on Friday 15 May 2009.   (AP Photo/Hector Mata)
William Johnson preps a Saab at the North American International Auto Show in Detroit, Friday, Jan. 11, 2008.
William Johnson preps a Saab at the North American International Auto Show in Detroit, Friday, Jan. 11, 2008.   (AP Photo/Carlos Osorio)
In this Feb. 23, 2009 file photo, a Saab logo is displayed on a car in Frankfurt, Germany.
In this Feb. 23, 2009 file photo, a Saab logo is displayed on a car in Frankfurt, Germany.   (AP Photo/Ferdinand Ostrop, File)
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Reader71485694
Jun 16, 09 8:23 AM CDT
Okay, a boutique company that makes 12 cars a year is buying Saab with a boatload of European Investment bank money. Is this a parallel universe? Saab can run itself if the Euro union props it up. Reply
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