The future of Swedish carmaker Saab looks pretty bleak, despite recent talk that parts of the bankrupt firm could yet be sold off.
But what does this mean for Saab owners in the UK? Many are now asking whether they will still be able to get parts for their vehicles, and if their cars’ value on the second-hand market will be seriously damaged.
Saab’s decline
Saab was sold by the American manufacturer General Motors in early 2010 to a Dutch sports car firm called Spyker.
But just over a year later, in March 2011, Saab stopped production at its main Trollhattan plant near Sweden’s west coast after disputes over the failure to pay suppliers.
In the following months, a number of possible rescue deals were put forward. But the involvement of Chinese manufacturers and banks led GM to effectively veto any further investment. GM had continued to supply technology and components to Saab following its 2010 sale, and was concerned about increased competition from China with its own cars.
GM’s stance was part of the reason Saab was forced to apply for bankruptcy on 19 December last year.
Fresh hope?
Since the bankruptcy application was filed, a number of new firms have been linked with the possible purchase of parts of Saab, or even the whole business. These include India’s SUV maker Mahindra & Mahindra, as well as an unnamed Turkish company.
But whatever happens, there is no guarantee that the Saab brand will survive, or that any vehicles or parts produced in the future will match those already on the market.
What now for Saab owners?
So where does this leave you if you own a Saab, or are even thinking of buying one, either new or second-hand ?
Saab GB, the firm’s British arm, went into administration in November. The administrators, accountant Grant Thornton, have said that the standard three-year warranties that come with new Saabs should nonetheless still be honoured in the future, although the official Saab GB website seems oddly short of information.
The firm did set up a helpline last year for worried owners -- 0845 300 9593 – although when Confused.com called it earlier this month, an automated message said it was closed, despite being during the advertised opening hours.
Reports late last year also revealed that Saab would be suspending warranty coverage for all North American customers. GM has however confirmed it would step in and offer warranty coverage for all vehicles sold in the US during its ownership of Saab.
In the UK, if Saab warranties are withdrawn, dealers themselves could offer to cover any repairs during the first three years as was the case following the collapse of MG Rover.
The availability of parts and spares is not thought likely to be a problem in the future, as Saabs share many components with GM vehicles.
Buying and selling
As you might expect, dealers are offering substantial discounts on new Saabs as a result of this uncertainty.
And in the used-car market, the typical price of a Saab has also declined since the firm first reported difficulties last year. But provided parts remain available, there seems no reason for second-hand Saabs to lose any more value.
