General Motors has confirmed that it has signed a memorandum of understanding with Swedish supercar manufacturer Koenigsegg to acquire its Saab brand.
The sale, expected to close by the end of the third quarter of this year, includes an expected $600 million (£365m) funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government.
Additional support is to be provided by GM and Koenigsegg to fund Saab's operations and product program investments. This includes plans to launch several new products that are in the final stages of development.
Saab filed for reorganization under Swedish Law on February 20 but believes this new deal is a key milestone to successfully emerge from its reorganization process.
As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology during a defined time period.
Additionally, Saab plans to continue to produce its next generation 9-5 models in the Saab production facility in Trollhättan, Sweden.