General Motors officially announced today that it reached a preliminary agreement to sell its Saab division to a consortium led by Swedish sports car maker Koenigsegg. The deal that is expected to close by the end of the third quarter of this year includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government, while GM said that it plans to support Saab's new owner. General Motors did not provide any specific finance details on the sale.

As part of the agreement, the American automaker will continue to provide Saab with architecture and powertrain technology during a defined time period while GM said that the Next Generation 9-5 Sedan and Station Wagon models will be produced in the Saab production facility in Trollhattan, Sweden.

"This is yet another significant step in the reinvention of GM and its European operations," said GM Europe President, Carl-Peter Forster. "Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company. 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."