With General Motors (GM) and Swedish sports-car maker Koenigsegg reportedly having struck a preliminary deal pertaining to the loss-making Saab Automobile unit on Tuesday, the US ownership of the Swedish Saab carmaker will likely come to an end after nearly two decades. The GM-Koenigsegg deal is likely to come through in 2009 third quarter.

Both the companies have confirmed that a memorandum of understanding has been signed, conditional to $600 million of financing from the European Investment Bank that will be pledged by the Swedish government. Though there have been no formal disclosure about further financial details, Saab has talked of a nearly $1-billion requirement in for upgrading its operations.

Saab filed for restructuring on February 20, as its US parent was in deep financial trouble and the Swedish government adopted a hard-hitting approach. The Saab move had, in effect, separated it from GM, which sought bankruptcy protection on June 1.

As per the terms of the GM-Koenigsegg deal for the Saab unit, GM will provide the carmaker with some parts and technology, and both GM and Koenigsegg will collectively finance the rollout of some new Saab products in the pipeline.

Commenting on the deal, the GM Europe president, Carl-Peter Forster, said: "Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company."