GM agrees to sell Saab to supercar company Koenigsegg

General Motors confirmed Tuesday morning that it has a tentative agreement to sell Saab to a group led by Swedish supercar maker Koenigsegg Automotive.

The deal would close by the end of the third quarter and put Saab in the hands of an upstart, boutique car company known for producing eye-catching cars with gaudy horsepower ratings and even gaudier price tags.

The agreement includes $600 million in financing from the European Investment Bank. The money would be backed by the Swedish government. GM would continue to support Saab with underpinnings and technology for its cars during the transition.

Saab has been in the Swedish equivalent of bankruptcy since Feb. 20, and GM filed for bankruptcy June 1 in the United States.

Saab has struggled under GM ownership, losing money and struggling for a niche in the crowded U.S. marketplace and within the Detroit automaker

By Greg Migliore