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17 June 2009

Saab Sale Advances

Bankrupt General Motors appears to have a deal in place to sell its Saab subsidiary. It will get no cash up front, but will receive payments of more than $150 million later if the company turns a profit. GM may also have continuing contract manufacturing work for Saab.

A small custom car maker in Sweden, a European bank, and the Swedish government were all part of the purchase deal which will provided $600 million in bailout loans to the Saab. GM paid a total of $725 million for Saab in two transactions (the first 50% in 1990 for $600 million, and the rest in 2000 for $125 million).

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