TAKEOVER PLANS ARE SWEDE MUSIC FOR SAAB

SUPERCAR specialists Koenigsegg have come to the rescue of fellow Swedes Saab.

The executive car manufacturer was left floundering after the financial meltdown of GM

but the US motoring giant has now signed a memorandum of understanding for the company's purchase by the Koenigsegg Group.

The group is made up of the supercar manufacturer and a consortium of private investors and has reached a tentative agreement to buy Saab.

It is understood that the takeover has also been made possible with the help of £365 million from the European Investment Bank which has been guaranteed by the Swedish government.

General Motors are unlikely to receive a fee from the Koenigsegg Group for Saab but will benefit from the loss of another brand (and its debts) from the GM books.

Saab's MD, Jan Ake Jonsson, said: "The proposed agreement will enable us to maximise the brand's potential through an exciting new product line-up with a distinctly Swedish character.

"Today's announcement is great news for Saab's current and future customers, dealers, suppliers and employees around the globe."