Koenigsegg pulls out of Saab purchase

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Koenigsegg the Swedish manufacturer of high performance sports cars has backed out from purchasing Saab from General Motors. This sudden move by Koenigsegg may well lead GM to revisit its contingency plan to shut down the Saab division. On June 16th 2009 Koenigsegg announced its intentions to purchase the Saab brand from GM, but later opted out due to delays in closing the deal terming it as 'risky'.

 

GM CEO Fritz Henderson said "The company is very disappointed with the pull of the Saab purchase and will take the next several days to assess the situation and will advise on the next steps next week." Saab is a Swedish car manufacturer known for advancements in turbo charging and green technology. GM bought 50% subsidiary of Saab's automobile division in 1989 and plans to launch a new cross over SUV hailed as 9-4X which will share the same platform as the new Cadillac SRX. The car is expected to go on sale 2010 onwards. Here is the original press release:

"Koenigsegg Group AB Terminates Agreement For Purchase of Saab