General Motors ( GMGMQ) said Tuesday it reached a memorandum of understanding to sell its Saab division to a consortium led by Koenigsegg Automotive AB, a Swedish automaker.

The sale, expected to close by the end of the third quarter, includes an expected $600 million funding commitment from the European Investment Bank and is guaranteed by the Swedish government. Additional funding for the deal will be provided by GM and Koenigsegg Group AB.

Terms of the deal include plans to launch several new products that are in the final stages of development at Saab.

The price of the deal wasn't disclosed.

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

GM will continue to provide Saab with architecture and powertrain technology during a defined time period, GM said.

Saab went into creditor protection in February in an effort by GM to sell the unit. Two other final candidates to buy Saab were reportedly Renco, a private holding company, and Merbanco, a Wyoming-based private investment group.