The Koenigsegg Group, set to acquire Saab from General Motors, may be splintering, Sweden's Ministry of Industry said.


[Jöran Hägglund, Emblem Saab Sonett, Christian von Koenigsegg]
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Some of the prospective owners of Saab Automobile may be about to jump off, said Jöran Hägglund on the Ministry of Industry, responsible for government negotiations, in an interview with daily Göteborgs-Posten.

The working process to get the Saab deal finished is in an intensive stage. In June General Motors signed a memorandum of understanding to sell Saab to Swedish sports car maker Koenigsegg Group.

Now it emerges that the group of investors backing up Koenigsegg Group – who are still unknown to the public – may be splintering or changing because of the massive attention the acquisition has brought about.

“We have met them. We are trying to get as good picture as possible to ... I think there is some change to the club”, Jöran Hägglund, the government's chief negotiator in the automobile industry, said to the newspaper.

“There are those who do not like to be seen. Apparently they think what happened so far has been too much. So it's going to be some changes”.

There's also speculations that at least one of the investors is backing down since it's unlikely that the Swedish government is willing to support the deal with taxpayers' money. Saab is at present under creditor protection and Koenigsegg is in talks with the Swedish government about guarantees for a potential European Investment Bank loan. Still, the government is in the dark on how much the Koenigsegg Group would invest in Saab.

"There won't be any deal between Koenigsegg Group and General Motors if the taxpayers don't put in money.  And I don't think the state is willing to do that, so I don't believe there will be a deal", writes Jacques Wallner, motor and car expert at daily Dagens Nyheter, in a comment to the disorder. 

The group has been criticized for not having enough capital to run a loss-making company in Saab’s size. If General Motors wasn’t able to make Saab profitable, how will Koenigsegg, that makes as many cars a year that GM makes a minute, pull it off?

According to official data Koenigsegg Group has five executives: American Augie K Fabela (Chairman), Norwegian Bård Eker and American Mark Bishop. American Melissa Schwartz is Deputy Director and Christian von Koenigsegg, who founded the sports-car maker in 1994, is President.

Saab Automobile made a operation loss last year of 4,148 million kronor ($377 million, $553 million). That is an increase of 90 percent from a loss of 2.194 million kronor a year ago.

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Last Updated (Sunday, 09 August 2009 08:15)