Swedish luxury car manufacturer Koenigsegg is set to buy Saab.

Swedish sports car manufacturer Koenigsegg has agreed to buy Saab Automobile from General Motors (GM), for an undisclosed sum.

Koenigsegg, famous for its luxury sports cars, has just 45 staff at its headquarters in Sweden, and produced just 18 cars in 2008, compared to Saab who employs approximately 3,400 staff and sold 93,000 cars in the same year.

The sale is expected to close by the end of the third quarter and is likely to include $600 million (£364m) of financing from the European Investment Bank (EIB), guaranteed by the Swedish government.

In a statement issued by GM Europe today (16 June), it says that this tentative agreement is a key milestone for Saab to successfully emerge from its reorganisation process.

GM said it would continue to provide technology to Saab for a “defined time period”.

Carl-Peter Forster, GM Europe President commented on the deal: “This is yet another significant step in the reinvention of GM and its European operations.

“Koenigsegg Group’s unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg’s proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors.”

The sale will be subject to regulatory approvals and customary closing conditions.

GM had previously announced the sale of its HUMMER brand to a Chinese motor company, and the sale of its Opel and Vauxhall brands to a Canadian company, following its move into bankruptcy at the beginning of June.