GM will cover Saab warranties in America

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Saab 9-3

Saab has filed for bankruptcy, again, but General Motors will cover Saab warranties in the U.S. Photo Credit: Pitak/Wikimedia Commons/CC-BY-SA

The latest Saab bankruptcy filing makes the demise of the company all but certain. The company will not honor any warranties, but General Motors has agreed to honor Saab warranties in the U.S.

Yet another Saab bankruptcy

Every few years, Swedish auto firm Saab looks to be down for the count, but the latest bankruptcy filing by the auto firm could well serve as its death warrant. According to CNN, the latest Saab bankruptcy filing is not merely asking for protection in order to restructure, the company is going into administration. Saab could be sold, wholesale, to an investor or could be sold off in parts.

Executives from Swedish Automotive, the company that purchased Saab from General Motors, have stated the wish to see Saab sold off in its entirety so it could continue to function, according to the Daily Mail. However, the company could be too far gone to revive. Production hasn’t taken place since April, and its employees haven’t been paid for a month. The company is deeply in debt and has run out of funding, as a deal to sell Saab to two Chinese car companies was scuttled by General Motors, which still owns a stake in the company.

Warranties suspended

Saab Cars North America has announced, according to USA Today, that it has suspended all warranties as of Dec. 19 and will no longer honor them. SCNA is not tied to Saab’s headquarters; it is technically its own financial entity. However, because of the bankruptcy filing by its parent company, it can no longer honor any warranties. Any new Saabs sitting on lots have to be sold “as-is,” as used cars.

General Motors has said it will honor any Saab warranties that are still valid for cars that were made during its ownership of Saab. That covers about 48,000 cars in the United States and 9,000 in Canada. According to AutoWeek, most of the cars in America date to the 2009 model year or earlier, though some cars from the 2010 model year were sold in Canada. GM’s ownership of Saab lapsed in February of 2010, when Spyker, now Swedish Automobile, bought Saab from GM.

A few cars with no warranty left

There are about 3,000 Saabs left on lots across the U.S., though the cars may not be covered under the four-year, 50,000-mile warranty. SCNA is not required to work on any cars, though dealers still might. A third party could be brought in to administer warranties for remaining unsold cars.

Saab sales have been trending downward constantly since 1986 and only 5,340 were sold from November 2010 to November 2011 in the United States. In Australia only 139 have been sold this year, according to the Sydney Morning Herald, and only 14 sold there in 2010.



Daily Mail

USA Today


Sydney Morning Herald

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