One major hurdle has been cleared in Swedish supercar maker Koenigsegg’s hopes of acquiring Saab, as the European Investment Bank granted Saab a €400 million ($599 million) loan today.
“This is one step, but it’s a milestone for us,” Koenigsegg Chairman Augie Fabela told Bloomberg. “There are still challenges, and time is of the essence, but everybody is working for the same goal, the revival of Saab.”
With the loan from the European Investment Bank, the question of how to finance the purchase and production of Saab automobiles seems to have been answered. Although the EIB loan won’t cover all costs, it was one of the major contingencies of the transaction. Chinese carmaker Beijing Automotive Holdings Co. will help cover the rest of the financing, as the company agreed to take a minority stake in Saab.
Saab initially applied for the loan earlier this month, and after several weeks of discussions, the company was granted the loan. Per conditions of receiving the loan, the money must be used to develop fuel-efficient technologies and vehicles, in addition to advanced safety features. The loan from the EIB will be guaranteed by the Swedish government and is part of the European Union’s aid program for helping companies hit hard by the global financial crisis.