Saab warranty and parts for North America - SCNA bankruptcy

[nordwulf]

Press release from Saab. They are working on a solution for the warranty not covered by GM.

Dec. 21, 2011, 3:56 p.m. EST

Saab Cars North America to Pursue Out-of-Court Solution

ROYAL OAK, Mich., Dec. 21, 2011 - Today, Saab Cars North America has elected to pursue an out-of-court resolution for SCNA operations. The SCNA Board of Directors believes this is the best course of action to maximize the enterprise value for its customers, dealers and creditors. McTevia & Associates, a nationally renowned and respected financial advisor to companies in transition, has been chosen to direct the process. In the interim, SCNA continues its day-to-day operations.

"The SCNA Board's decision to explore all possibilities out-of-court is the most appropriate direction to take for customers, dealers and creditors," said Tim Colbeck, President and COO, Saab Cars North America. "By having an experienced, outside Administrator oversee the process, the interests of all parties are better served."

Most importantly, SCNA is committed to developing a solution that would provide warranty coverage for Saab vehicles covering model year 2010 and 2011 models. As has been previously reported, GM is honoring Saab warranties for model year 2009 and prior years, per agreements.

SCNA is aggressively investigating all options aimed at reinstating its parts business in North America in a timely manner. Saab Parts Company in Sweden remains operational and not impacted by the recent announcement regarding Saab Automobile AB.

Swedish Automobile N.V. (SWAN) announced that Saab Automobile AB, Saab Automobile Tools AB and Saab Powertain AB filed for bankruptcy on Monday, December 19, 2011.

[Mark_Venture]

That's my attitude as well. As long as there is nothing wrong with a newer Saab that is not covered by warranty, why worry? If I would have known this ahead of time, I may not have bought it a few months ago. But since I have it, I am not going to worry about the value or any potential problems because that doesn't do any good. Enjoying your new Saab is much better for the heart and soul.

No cost scheduled maintenance is a nice feature but how much do a few oil changes and checks actually cost? I was going to do oil changes myself anyways because my closest Saab dealer is 200 miles away.

I'm lucky, I do have a choice of Saab dealers (while they last) near me... Delaware Saab/Cadillac is 7 miles, General Sales Saab/Cadillac is about 20miles (Got my 9-3 here), and there is on in NJ that is 30 or 35 miles away (never been there). Scott Saab/Caddy/Chevy (where I got my 9-4x) is 90miles from me, but only 15 from Mom's house.

You're right. for the 9-4x, since it uses conventional oil, having the "no cost maintenance" is not as necessary as the others.

My 9-4x being non-turbo and mostly GM "regular stuff" I didn't plan on religiously following the SAAB schedule like I did with my older Saabs (I went by the book on my '05 9-3 and '93 9000CSE, and was pretty close on my '86 9000T), other than taking advantage of the FREE stuff... I'll likely do what I did with my past non-SAAB cars... oil change and tire rotation every 5000 miles (Based on the car's oil life indicator), and have the belts/hoses/etc checked every 15k or so unless I'm going on a long trip.

[nordwulf]

From The New York Times
For Saab Owners and Would-Be Buyers, What to Expect of Warranties, Recalls and Fire Sales - NYTimes.com

For Saab Owners and Would-Be Buyers, What to Expect of Warranties, Recalls and Fire Sales

The bankruptcy of Saab Automobile leaves owners, dealers and would-be customers with plenty of questions and some unpleasant answers.

As The Times reported Monday, Saab filed for liquidation after a takeover by Chinese investors was blocked by General Motors. It retained veto power over any deals despite having sold the Swedish automaker in 2010 to Spyker Cars.

Wheels has compiled a few of the most pressing questions facing current owners and shoppers hoping for a holiday bargain, followed by responses from Saab executives and federal safety representatives.

Are there deals to be had on unsold Saabs?

Maybe. Tim Colbeck, president and chief operating officer of Saab Cars North America, said in a telephone interview that dealers were not restricted in any way from selling the 2,400 vehicles parked at 185 dealerships nationwide. But that could change.

“We are determining whether we need to do a stop sale,” he said.

Kurt Schirm, the chairman of the Saab National Dealer Council, said in an interview that dealers could technically sell those cars now, but it would be difficult because vehicles from the 2010-11 model years no longer carried a factory-backed warranty.

“Right now we’re not in a position to know how to even put a deal together,” said Mr. Schirm, whose family has owned International Motors in Falls Church, Va., a standalone Saab dealership, since 1971.

What happens to warranties?

General Motors, which owned Saab until February 2010, said this week that it would cover warranty work on vehicles sold during its period of ownership. That equates to about 48,000 vehicles in the United States, James Cain, a G.M. spokesman, said in a telephone interview.

He added that those owners should have repairs performed at their dealers, and G.M. would make arrangements to reimburse the dealerships.

Saabs from the 2010-11 model years are no longer protected under any warranty, which affects about 10,000 owners, said Mr. Colbeck. The original factory warranty provided bumper-to-bumper coverage for four years or 50,000 miles, without any charge on scheduled maintenance for the first three years or 36,000 miles.

In an e-mail, Michele Tinson, a Saab Cars North America spokeswoman, said the company was “looking at internal solutions to cover the warranty for Saab vehicles covering model year 2010 and 2011 vehicles.”

Would there be a warranty on the unsold Saabs?

The warranty suspension leaves about 2,400 new Saabs sitting on dealer lots without the customary new-car protection.

Mr. Schirm, of the dealer council, said the dealer group was exploring whether it could obtain warranty coverage elsewhere for those new, unsold vehicles.

Who handles recalls for safety problems?

Mr. Cain, the G.M. spokesman, said his company would be responsible for recalls on the vehicles it sold through the 2009 model year.

In contrast, if Saab no longer exists to report problems and pay to fix them, the news may not be so good for owners of the 2010-11 models. Mr. Colbeck said he wasn’t sure how recalls would be treated in such a scenario.

Karen Aldana, a spokeswoman for the National Highway Traffic Safety Administration, which handles recalls, wrote in an e-mail that when a company had no assets and was being liquidated, recalls would not be completed “as there would be no money to pay for this work.”

In the case of Saab, however, N.H.T.S.A. planned to work with the Justice Department to “ensure that the safety of Saab owners is represented in the upcoming bankruptcy proceedings.” She added that the two federal agencies would “vigorously press bankruptcy courts to ensure that the recall obligations of bankrupt vehicle manufacturers are met to the greatest extent possible.”

Will Saab parts still be manufactured?

Mr. Colbeck said that the entity in Sweden that manufactured parts was a separate company and was not involved in the bankruptcy. Consequently, he said, owners should not have a problem getting parts.

Mr. Schirm agreed. “My understanding is that for the foreseeable future there is no worry about there being parts availability issues,” he said.

How many Saabs are on American roads? Were they all built in Sweden?

At the end of September, there were almost 469,000 Saabs registered in the United States, according to Experian Automotive.

General Motors has been building the 2011 9-4X crossover in Ramos Arizpe, Mexico. Saab’s other models — the 9-3 convertible, sedan and wagon, as well as the 9-5 sedan — were built at Saab’s headquarters in Trollhattan, Sweden.

[Mark_Venture]

I called Delaware Saab about my 9-4x, as expected, since I didn't buy from them, they wont honor any warranty stuff. She did suggest if I do get any work done to SAVE THE RECEIPTS for once Saab Cars North America gets things sorted out. She also said to call the dealer I purchased it from.

So I called Scott Saab in Allentown, PA (where I purchased my 9-4x from in first few days of October). They told me they WILL honor the warranties on the '10-'11 cars they sold. So I have an appointment to get my rear window washer looked at on Jan 20. (works out because my wife and I already planned to go see Mom and go skiing anyway... so we just have to drop the 9-4 at the dealer)

[tawnysisul]

You are lucky your dealer is honoring the warranty. I called mine and they told me to hold off or pay cash for the work and hold onto the receipts. I have a 2010 9-3. My service light had come on even though I had it in for service Oct 1. They said it probably wasn't reset and simply reset it and did not charge me anything.

[Burnsside42]

Time for service light or Check Engine Light? Time for service they should not charge to reset - unless you are DUE for a service (aka Oil Change/Rotate/Filters) Since you just had it in - like you said, they forgot to reset it or it's just being a Saab and changed it's own mind and came back on because it can. lol

If it's the Time For Service - just pop in they should be able to reset that in about 5 minutes or LESS.

[Burnsside42]

This was as of 1-4-2012

SCNA DEALER Q&A (2)
We encourage you to monitor IRIS daily for SCNA’s updates
What is the position for Canadian retailers who work with the Saab distributor, IFS?
Similar to the U.S. vendors, SCNA payments to IFS have also been indefinitely suspended. No payments are being processed at this time. SCNA’s trustee is conducting a review of all assets and liabilities, which could take up to 30 days.

WARRANTY
If a vehicle is certified pre-owned, what is the status of the CPO warranty?
Warranty coverage on CPO vehicles is currently suspended.
Is anyone researching an after-market warranty company?
SCNA is committed to developing a solution that will provide warranty coverage for Saab vehicles covering model year 2010 and 2011 vehicles. Some of these scenarios may involve a third-party warranty provider.
Is SCNA recommending that vehicles be removed from our sales lots until the warranty issue has been resolved?
No. SCNA recommends that the warranty information be removed from the unsold vehicles and that a customer receive a written acknowledgement that he/she is purchasing the vehicle “as is” - without a warranty. We are aggressively researching options to arrange third-party provided warranty coverage for 2010 and 2011MY vehicles.
If SCNA arranges a warranty solution, will the warranty include vehicles that remain in dealer inventory for sale?
SCNA continues to investigate various solutions to the warranty issue, both for vehicles in service and those yet to be sold. However, in the interim dealers can work to acquire warranty coverage from a third party.

PARTS
Is GM responsible for parts on 2009 model year vehicles and prior?
At this time, Saab remains the primary source for all parts. In some instances when Saab does not have inventory on 9-7x or 9-4x parts, dealers will be encouraged to order these from GM. Parts for the 9-2X can be ordered through Subaru dealers.
Is the parts ordering system shut down?
Effective Monday December 19th, all parts ordering was suspended. A prepaid parts ordering process is being developed and should be operational in early January. Please monitor IRIS for Details.

SALES
What is the status regarding sales person reward cards?
The Salesperson rewards cards are frozen at this time and unspent monies are not available. (Memo
posted to IRIS by Jim Sweeting on Friday, Dec. 23, 2011)
Are Co-op payments being processed?
Currently, there are no payments being made, including Co-op payments.

As of 1-9-12 TAC (Technical Assistance) is no longer open or able to serve Saab techs - any problems are being re-directed to GM's TAC line.

[Burnsside42]

New Release as of today;

Saab Cars North America announced on December 19, 2011 that due to the bankruptcy filing by Saab Automobile AB, warranty coverage, reimbursement and related warranty administration on behalf of General Motors was suspended on all Saab vehicles.

The Limited Warranties affected are as follows:

New car limited warranty 4 years 50,000 miles
Powertrain 6 years 100,000 miles
All Emission warranties
Safety Belt / SRS 60 months
Certified Pre Owned Coverage with sale date prior to Feb 23rd 2010
Corrosion warranty
Parts Warranty

GM has released information to GM dealers who also have a Saab franchise that for 2009MY and prior Saab vehicles sold and marketed by GM and in the United States and Canada, that GM will accept and honor warranty claims submitted into the GM global warranty system. GM has informed SCNA that it will treat warranty claims for Saab dealers without a GM franchise the same way. Warranty reimbursement for these Saab dealers will need to be handled through a GM/Saab dual dealer.

FAQs provided by GM for GM Warranty Coverage for MY2009 and Prior SAAB Vehicles

What SAAB vehicle warranties will be covered by GM?
All valid warranties on 2009 and prior model years will be covered by GM.

Will the routine maintenance program be reimbursed by GM for the vehicles covered under the warranty?
No, routine maintenance is not part of the GM coverage.

As part of the warranty coverage, will GM cover a loaner vehicle while a customer's vehicle is at the dealership for repair?
If the customer's vehicle is required to stay overnight for repair, a loaner vehicle may be provided to the customer. Dealers will be reimbursed up to $38 per day.

If a customer has to call Roadside Assistance, will the charge for Roadside be covered under the GM program?
Yes, Roadside Assistance will be covered under the provisions of the GM warranty program for vehicles still under a valid GM warranty.

Are the warranties for SAAB Certified Pre-Owned covered under the GM program?
Yes, valid CPO contracts written prior to February 23, 2009 are covered under this process.

Who can customers call if they have questions about their warranty?
Customers can call General Motors Customer Assistance at 855-880-0808. Customer Service Agents will be available Monday - Friday, 8am - 8pm ET

Are goodwill and policy covered under the GM warranty program?
No, goodwill and policy are not covered under the program. Claims submitted for goodwill and policy will be rejected.

Are we supporting the use of Dealer Empowerment tools for the GM/SAAB dealer if the repair is performed within his facility?
No, GM is not in a position to pay goodwill or policy on a SAAB vehicle. A dealership could offer something to the customer at their own expense.

Can't we help the 2010 and 2011 Model Year SAAB customers?
No, the warranties for 2010 and 2011 MY SAAB vehicles remains suspended. GM has no responsibility for these vehicles.

Are we able to buy back or trade exchange SAAB vehicles?
No, there are no provisions to buy back or trade exchange vehicles.

What if a U.S. SAAB customer with a valid GM warranty is traveling in Canada and requires a warranty repair?
The US customer should have the repair done in Canada at their expense and then contact their US SAAB dealership upon return to arrange for reimbursement.

Does a GM/SAAB dealer have to cooperate with a stand-alone SAAB dealer and process their claims for them?
No, they do not.

If there is not a GM/SAAB dealer in the local area, can a stand-alone SAAB dealer use their local GM dealer to process claims for reimbursement?
No, we are trying not to disadvantage the SAAB dealer network. If the SAAB standalone dealer does not know where a GM/SAAB dealer is, they can call the Warranty Support Center for the location of a GM/SAAB dealership. Arrangements can then be made to email or fax the documentation.

If a SAAB vehicle is in a GM only dealer, can that GM dealer get reimbursement for the repair of the SAAB vehicle if it is a 2009 or older model year and still within warranty?
Again, we are trying not to disadvantage the SAAB dealer network. Additionally, it would be unlikely that a non-SAAB GM dealer would be able to repair the vehicle since they would not have access to information, tools or labor times. Therefore, arrangements should be made for the vehicle to be moved to a SAAB dealership. The other option is for the customer to pay the repair and submit the receipt to GM through CAC for reimbursement.

[nordwulf]

Message from Charles River Saab on Facebook this morning:

Big Story! Saab Cars NA has re-opened the parts pipeline and we should start to receive Saab supplied parts next week.

[nordwulf]

From Automotive News:

The administrator handling Saab Cars North America's finances told creditors last week that the company will be liquidated.

"We notified creditors that it is our opinion that there is no way to salvage the company," said Jim McTevia, of McTevia & Associates, the administrator appointed to operate the U.S. distribution arm.

Parent company Saab Automobile filed for liquidation Dec. 19 in a Swedish bankruptcy court. Saab Cars North America suspended operations that day.

Saab Cars North America "laid off probably 80 percent of the employees" on Jan. 13, said McTevia.

He said he is seeking a buyer for the U.S. parts distribution business, which he described as the only meaningful asset.

Tim Colbeck, president of Saab Cars North America, expects a buyer for the parts business will be found by the end of February. "There still will be a market for parts," Colbeck said. The question is whether there will be a U.S. distributor for parts."

McTevia said he told creditors: "There is no money to keep the company going until someone figures out what to do."

He added: "They have some parts inventory, which we started distributing. There are no new parts coming in."

Leonard Bellavia, the lawyer representing 161 of Saab's 188 dealerships, said he expects dealers to decide this week or next whether to file for a Chapter 7 involuntary bankruptcy or wait for the administrator to liquidate the company. The dealers' decision will be based on which option potentially gives them a greater portion of the proceeds.

McTevia said the U.S. entity is "probably going to go on for a while because there is all kinds of litigation. There are assets to be liquidated." The company's headquarters in Royal Oak, Mich., near Detroit, will be closed by the end of February.

Bellavia estimates the liquidated assets have a value of between $75 million and $125 million, including $25 million owed by General Motors for warranty work. He estimates liabilities at $10.5 million.

Saab resumed parts distribution to dealers on Thursday, Jan. 19. The operation was suspended Dec. 19.