Count another falling brand under the GM logo sold. The latest car brand made famous by General Motors has been officially sold to Koenigsegg Automotive AB, a tiny company that produces only a dozen custom-made super cars a year.
GM bought a 50 percent stake in Saab for $600 million in 1990 and acquired the rest for $125 million in 2000. GM CEO Fritz Henderson said GM could build another car for the Saab brand. “Based on the preliminary plan, we expect the buyer to ask GM to build the 9-4x,” Henderson told reporters during an online chat Tuesday. “We will also provide support in terms of powertrain and other technologies.”
While the task to rebuild the Saab brand seems like a daunting task, Koenigsegg has been known to be successful without the expensive modes of advertising and promotions. Can you imagine a car company that does not advertise prices but is doing good in the business? That alone speaks highly of what the company can do to turn around the sagging fortunes of the Saab.
No financial figures have been revealed but many speculate the deal to be a virtual giveaway. The deal is expected to be finalized by the third quarter of the year.
(Source) CBS News
Tags: car brand, car company, Cars, daunting task, fortunes, General Motors, GM, gm logo, koenigsegg, modes, percent stake, powertrain, promotions, Saab, tiny company