GM Sells Saab to Tiny Swedish Custom Automaker

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." (More Saab stories.)