Wednesday, September 2, 2009

GM to fill Saab funding hole: report - The Local

A Swedish company which manufactures luxury sports cars, Koenigsegg, reportedly is getting General Motors off the hook by purchasing the Saab motor division.

One small catch--in order for this deal to happen, GM, or current owners of General Motors, American taxpayers, will have to come up with some 412 million dollars to make it happen.

According to a news article in today edition of The Local, "Current owner GM has already contributed 2.8 billion kronor ($385 million) in the form of a loan and through paying for production equipment for the new Saab 9-5. The Koenigsegg Group has contributed 720 million kronor. " In other words, we, the current owners are 'fronting' nearly $300 million more than the prospective new owners, considering their contribution of $99.79 million.

Only an American company, now being operated by the United States federal government could make such an outrageous deal. Read complete details in The Local's article:

GM to fill Saab funding hole: report - The Local

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