Earlier Delphi, the Swedish company in charge of liquidation, announced that it was auctioning off the museum's entire collection of vintage cars to the highest bidder.
Chairperson of Trollhättan's Municipal Board, Paul Åkerlund, told P4 Väst that he was delighted to save the museum.
"I think it means a lot, it is a part of Trollhättan's soul. It is also a big tourist attraction," Åkerlund said.
The museum includes the Ur Saab which was presented for the first time in 1947. Other cars of note include a Saab-99 from 1977, the classic model Saab 900 and 900 Cabriolet which sold well in the USA.