Saab files for bankruptcy; GM steps in to honor some warranties

Swedish Automobile NV, which owns Saab Automobile AB, announced that Saab Automobile filed for bankruptcy protection Dec. 19. The filing comes after months of reorganization negotiations with Chinese automakers Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile fell through. Numerous reports state that Saab Automobile suspended warranty coverage on all of its vehicles that were sold in North America.

General Motors, which owned Saab Automobile 1989–2009, says it will honor warranties on Saabs from the 2009 model year and earlier. (GM sold Saab Automobile to Swedish Automobile in 2010.)

“If Saab is unable or unwilling to meet its warranty obligations, we are setting up a program to reimburse dealers to complete service,” James Cain, who is a spokesperson for GM, tells Consumers Digest.

Cain says GM will cover bumper-to-bumper, emission and powertrain warranties. Owners of Saabs of those model years still should take their vehicle to a Saab dealership to be serviced, he says.

Cain says GM will make sure parts are “secured” for warranty work if it’s needed, but adds that it’s too early to tell exactly how GM will do so.

As for 2010, 2011 and 2012 (the 9-3 and 9-5) models, Saab Automotive told its North American dealers to sell new 2012 and 2011 models “as is,” or without warranty, according to Automotive News.

In October, Michelle Tinson, who is a spokesperson for Saab Cars North America, a subsidiary of Saab Automobile, told Consumers Digest that Saab vehicle owners wouldn’t be affected by Saab Automobile’s reorganization efforts and that enough vehicle parts were in supply to continue servicing vehicles.

After the bankruptcy filing, Consumers Digest sought comment on service and parts for 2010 and newer models. Consumers Digest made seven calls to Saab Cars North America but nobody at the company answered the phone.

– K. Fanuko