A senior Swedish government official said on Tuesday it remained unclear whether Sweden would need to make guarantees for European Investment Bank financing in support of a deal to sell General Motors unit Saab. GM Europe said earlier on Tuesday a preliminary agreement had been reached to sell Saab to sports car maker Koenigsegg. "We do not yet know if Koenigsegg group will need loan guarantees or not," Joran Hagglund, state secretary for Sweden's industry ministry, told Reuters. GM Europe did not disclose terms but said the sale involved expected financing that would be guaranteed by Sweden. Read more.
In a related story, industry analysts say that for the new owners of Saab Automobile to make money selling small numbers of cars across the globe, they have to return to the Swedish automaker's roots. Somehow, a consortium of investors led by custom sports car maker Koenigsegg Automotive AB must restore Saab to the quirky, cutting edge and reliable brand once favored by professionals who wanted to look smart rather than wealthy, the Associated Press reported. Read more.