Saab's U.S. dealers seek fair compensation for warranty work, incentives

[nordwulf]

You need a subscription to view this article so I am reposting here to share this important information with the Saab community and many of US members and visitors.

It is still unknown how it will affect parts, warranty and free service for our Saabs.

Automotive News -- December 19, 2011 - 3:01 pm ET

Saab dealers hope to be compensated fairly for the losses they will incur now that the Swedish automaker has filed for liquidation. A Swedish court today approved the automaker's bankruptcy petition to liquidate and begin paying creditors. Two receivers were appointed to oversee Saab's assets. "Obviously it is very sad and disappointing news. A lot of jobs at the dealer level are going to be lost. A lot of assets are going to be lost by the dealers," said Kurt Schirm, chairman of the Saab National Dealer Council.

Saab currently has 188 dealers in the United States. A conference call with dealers was scheduled for 3:30 p.m. ET on Monday. Schirm estimated there are about 3,000 new vehicles in dealer inventory "that will be worth considerably less than had a deal been put together." Schirm is president of International Motors in Falls Church, Va.

The Saab dealer council has been in contact with NADA to determine each dealership's customer liability and other issues, he said during a telephone interview. "As the chair of the national dealer council we have been preparing in advance as to what we are going to do and how we are going to try to secure the dealer network's assets as best as possible to get some kind of compensation for what we are known to lose from our businesses," Schirm said.

Schirm said dealers will have legal claims against Saab Cars North America. But much remains unknown. "It just depends on whether or not there are assets to fund the claims that we have against Saab [Cars] North America to compensate us for receivables that are outstanding -- if they remain outstanding -- and the loss of our inventory values," he said.

Saab is up to date in terms of payments for warranty repairs, incentives and holdback, said Michele Tinson, a Saab Cars North America spokeswoman. Bernie Moreno, dealer principal of Saab of North Olmstead, Ohio, said there was not much that dealers could do to prepare for today's announcement. "Honestly, it is sad. Saab is a very iconic brand," Moreno said. "It has been around for a long time. There are a lot of people who have a certain amount of romance for the brand."

Moreno said there wasn't an opportunity to voluntarily terminate the franchise for the last several months. "To the extent that the dealers were able to sell off their inventory cheaply, that is all they really could have done to be prepared for it, aside from monitoring their own business expenses and cutting employment levels and cutting contracts," Moreno said during a telephone interview.

He said dealers will need to be careful selling off remaining new-car inventory. "Knowing where this is headed, you have to have confidence that the incentive money will be received," Moreno said. "Otherwise, whatever loss you are taking on the inventory, this is always a loss, gets magnified."

Commenting on Saab's product line, Moreno said "it is ironic that the best vehicles ever offered by Saab are available as the company faces liquidation. It was just too late. The forces that brought it down were forces that couldn't be fought back."

Source: http://www.autonews.com/article/2011...#ixzz1h16JVPpX

[nordwulf]

SOUTH BURLINGTON, VT -- Vermont businesses tied to the future of one of the world's more distinctive brands expressed concern Monday after the carmaker filed for bankruptcy.

The chief executive of SAAB Automobile hand-delivered an application for bankruptcy protection to a Swedish judge after talks with General Motors and Chinese investors interested in taking over the niche carmaker collapsed last week.
"It certainly raises some questions, but as of right now, it is not the end of the road," said Paul Choiniere, owner of PJ's Auto Village in South Burlington, a SAAB dealer since 1971.

Choiniere said SAAB's financial troubles were nothing new, dating back well before GM unloaded the brand in 2008, and said he hopes bankruptcy will be a catalyst for SAAB's eventual rebound. But a conference call between SAAB and its U.S. dealers late Monday left Choiniere in the dark about he should say to his customers. He wants to be hopeful. "SAAB North America has not filed anything in court and that's who we deal with," he said. "So we're not sure how it'll affect dealers (like us.)"

Choiniere said he will remain a loyal SAAB dealer for as long as he can. The factory has not shipped any 2012 model cars to the U.S., he said. What remains of 2011 model year new car inventory is offered at steep discounts. Analysts say that's because new car buyers are essentially gambling on whether the manufacturer will be around to honor the bumper to bumper warranty.

For all its woes, however, SAAB remains a familiar -- if quirky-- nameplate on Vermont roads. State motor vehicle records show 7,554 SAAB cars currently registered with the Vermont DMV, nearly 2 percent of the state's 411,373 active car registrations. At Foreign Car Repair in South Burlington Monday, Tyler Goodwin was struggling to find an air distribution component -- known as a heater box -- for a customer's 2002 9-5 model car.

"We can't get a new one through SAAB," Goodwin said. "We're trying to find her a used part."
Still, repair shops hope to continue servicing the brand well into the future, assuming SAAB figures out how to continue to supply proprietary parts. "I'd estimate we probably have 6 or 8 or 10 years of repair (business) ahead of us with the customer base out there at the moment," said shop owner Steven Prue. "As long as we can get parts."

Source: Dealers, Owners Wonder About Future of Saab - News Story - WPTZ Plattsburgh