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Cars Blog

Koenigsegg consortium faces tough road to right Saab

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June 17, 2009 10:07 am
By Peter C. T. Elsworth

DETROIT -- 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, industry analysts say, according to The Associated Press.

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.

"It was seen as a discerning choice," said Tim Urquhart, senior automotive industry analyst with the consulting firm IHS Global Insight in London. "It was a professional's vehicle, a doctor's or an architect's. A quality vehicle, but not an obvious statement like Mercedes or BMW."

GM announced Tuesday that it has struck a tentative deal to sell the storied brand, which started as a Swedish aircraft maker. The sale is to include a $600 million funding commitment from the European Investment Bank, guaranteed by the Swedish government. Additional funding would be provided by GM and the new investors.


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