Eker who owns 49 per cent of the Koeningsegg Group is reportedly in the process of selling one of his companies in order to provide fresh capital. In addition the group is said to have opened for foreign investors.

GM Europe's president Carl-Peter Forster is quoted by BBC as saying: "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength... made it the right choice for Saab as well as for General Motors".

GM says that as part of the deal there would be $600m (£367m) of funding from the European Investment Bank (EIB), guaranteed by the Swedish government. The sale is expected to be completed by the end of September.

GM also said it would continue to provide technology to Saab "during a defined time period".

(NRK/BBC)

Rolleiv Solholm