GM to sell Saab to Swedish automaker

DETROIT, MI – General Motors has reached a tentative deal to sell its Saab division.

GM has signed a memorandum of understanding with Koenigsegg Automotive for the purchase of Saab. The purchase price has not been released.

Koenigsegg is a small maker of expensive sports cars in Sweden. The company has just 45 employees. It will take over Saab, which has about 3,400 employees.

Saab filed for bankruptcy protection in Sweden in February. General Motors followed suit in the U.S. earlier this month. GM's restructuring plan includes the sale or elimination of the Saab, Hummer, Pontiac and Saturn brands.

The European Investment Bank is expected to provide about $600 million in funding for the Saab sale.

GM says the deal should be completed by the end of the third quarter.