Earlier this year, SAAB enthusiasts everywhere were dismayed to hear that the company had sought bankruptcy protection from its creditors.  Parent company General Motors was unable to help further because the American giant had financial troubles of its own. 

The future looked bleak not least because much corporate planning was wholly dependent on General Motors and the switching of some car production to Germany but Opel's plight was equally dire, requiring $2.8bn in state guarantees until 2011 just to stay in business. 

Suitors for SAAB were thin on the ground - hardly surprising, given the unfavourable global economic climate but a few tentative enquiries from major makers were initiated. In times past, Peugeot had expressed an interest in acquiring the brand but that company's own situation ruled out further interest and other bidders failed to materialise. Those of us who know and love SAAB cars feared an ignominious end but unexpectedly, rather like the deus ex machina from the realms of Greek tragedy, Koenigsegg Group AB declared a serious intent to bid for the troubled company.

The rumour mill: myth and reality

As negotiations to purchase SAAB progressed, the media (and websites such as this) became ever more eager for news. In June 2009, a letter of intent was signed confirming Koenigsegg's wish to purchase SAAB but by mid August, it emerged that one player in the Koenigsegg team pulled out. Failure to play down the significance of this development quickly, led to speculation that the entire deal was in jeopardy but the current state of play is that terms have been agreed, although funding to underwrite the deal has yet to be finalised. Whereas it would be unwise to regard this as a formality in this era of toxic loans, it it fair to say that that it is likely that funding will be secured, despite the unwillingness of the Swedish government to finance the project directly. What is clear at present, is that GM have been only too keen to part from SAAB and that only a token sum of money has been involved. There is, of course, a historic precedent for this type of deal - readers will surely remember the ill-fated sale of Rover. More importantly, SAAB will continue to have access to GM technology and research. This is vital for the success of the recently launched 9-3x and the forthcoming 9-5 replacement.

Who or what is Koenigsegg?

Avid car enthusiasts and certainly viewers of BBC's Top Gear here in the UK will have seen a Koenigsegg in action. Although whether readers will love or hate car styles, the author feels that on the balance of probability SAAB enthusiasts could not help but be impressed by the sleek shape, quirky design and devastating performance (the 800bhp CCR was declared fastest road car in the world during 2005). Drivers -and certainly the average UK resident- are unlikely to see a Koenigsegg supercar on the road, for numbers are strictly limited and the purchase price is prohibitive. Quite simply, Koenigsegg is a small manufacturer of hand built super cars based in Angelholm, Southern Sweden. For further information please refer to the official Koenigsegg website

Just what are Koenigsegg getting out of the deal?

Cynics might say that Koenigsegg have seized the opportunity to go 'big time' - making the leap from small, specialist maker of expensive niche cars to volume producer - at a bargain, 'fire sale' price to boot. Analysts will probably disagree, focusing in particular on the lack of experience the new team has in managing a company that has struggled to make a profit in 20 years despite the patronage of one of the biggest car makers in the world. While many SAAB enthusiasts dwell on the company's achievements in the realm of turbo charging, economists take the view that innovation has been driven by necessity. Looking deeper beneath the surface and further back into the past, purists' assertions that GM have diluted the marque identity by introducing engines and other components from their own products seems faintly ridiculous given that the origins of the much lauded B202 engines reach back to a design that was based on a Triumph Dolomite 1850 unit.

SAAB - the way ahead

For the new venture to succeed, SAAB needs very strong, purposeful direction. Christian von Koenigsegg assures us that his goal is to restore SAAB as a viable concern: "Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable.”

SAAB enthusiasts and owners should be reassured by the takeover. Enthusiasts forsee a potentially rosy future with a triumphant return to the glory days a distinct possibility. More attention to detail and innovation will certainly be welcome and there is the prospect of more performance oriented versions of the cars, recalling exciting machines like the Carlsson and Viggen of times past.

Copyright © www.serioussaab.co.uk August 2009. All rights reserved.
Read our full legal statement