Auto industry David and Goliath tie the knot

STOCKHOLM: Sweden's Koenigsegg, maker of some of the world's most expensive sports cars, has struck a deal to buy loss-making Saab Automobile from General Motors, the companies said on Tuesday.

In one of the most unlikely pairings in automotive history, the tiny sports car firm of 45 staff is expected to take over a company that employs around 3,400 staff, a cherished Swedish brand that became a national icon for stability and reliability.

GM Europe said on its website the deal included an expected $600 million of financing from the European Investment Bank, which would be guaranteed by the Swedish government.