The company was founded in 1994 by Christian von Koenigsegg, with the intention of producing a world-class supercar.

Based on Formula One technology, the car was required to be a two-seater, mid-engine layout with a hardtop. The initial design was drawn by Christian von Koenigsegg. Then he went with his sketches to Industrial Designer David Crafoord in order for him to realize the sketches into a scale 1:5 model. David then laid his personal touch to the design brief and finished the model. This model was later scaled up by Sven-Harry Åkesson in order to create the base plug for the initial Koenigsegg prototype that was finished in 1996. During the next years the prototype went through extensive testing and several new prototypes were built.

Christian von Koenigsegg got the idea to build his own car after watching the Norwegian puppet movie Pinchcliffe Grand Prix in his youth. However, he took his first steps in the world of business in his early 20’s running a trading company called Alpraaz in Stockholm, Sweden. The success of this venture gave von Koenigsegg the necessary financial standing to launch his chosen career as a car manufacturer.

Initially, Koenigsegg Automotive was based in Olofström. In 1997 The company needed larger facilities and moved to Margretetorp, just outside of Ängelholm. However, on February 22, 2003, one of the production facilities caught fire and was badly damaged. The fire was extinguished with help from 40 firefighters from various different fire departments (Ängelholm, Hjärnarp, Strövelstorp, Bjuv and Helsingborg), villagers from Margretetorp, and passers-by. Approximately 15 Koenigsegg cars, body parts, machines and engines were saved before the fire before it grew out of control. The cause of the fire was determined to be a short-circuit in the company kitchen dishwasher, which then spread to the tatched roof. On that same day, the Koenigsegg company took refuge at the nearby former Swedish Airforce Base, near Ängelholm. After a few days, the decision was made by von Koenigsegg that they would stay within the former wing to rise from the ashes.

From 2003 and on Koenigsegg has converted two large fighter-jet hangars and an office building into a car factory. Since the factory is located on the still active Ängelhom airport, clients can arrive by private jet straight next to the factory. Furthermore Koenigsegg controls and uses the former military runway for shakedown runs of production cars and high speed testing.

The Koenigsegg badge was designed in 1994 by Jacob Låftman, based on the shield of the Koenigsegg family. The shield has been the family’s coat-of-arms since the 12th century when a family member was knighted by the German-based Holy Roman Empire. The phantom insignia on the Koenigsegg`s rear window is a tribute to the Swedish squadron that operated from the F10 base, which had the ghost as its emblem.