Saab loan smoothes sale
The European Union has extended a helping hand to ailing car maker Saab via a hefty loanThe ongoing sale of Saab, currently owned by General Motors, to Koenigsegg Group AB has been on shaky ground in recent months, but a new 400 million Euro loan could assuage the naysayers.
Question marks began appearing around Koenigsegg's capability to finance the purchase of Saab, a loss making company, but a lifeline from the European Union's financing arm (the European Investment Bank or EIB) will go a long way to securing the Saab deal.
Some 400 million euro or about A$650 million will aid the planned sale of Saab to the Koenigsegg Group AB.
An EIB spokesman said "The loan to Saab has been approved."
The new owners will be expecting a lot from its new flagship vehicle, the 9-5 (pictured), which will need to perform well globally for Saab to turn around what is a loss-making business.
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