Saab’s financial troubles are affecting its dealer network as well. Manufacturer payments, including those for warranty repair, to Saab dealers in North America are on hold while Saab awaits bridge loan funding, according to the Automotive News.
Saab notified its dealers about the delayed payments, which involve warranty work, dealer holdback and dealer incentives. “While it is our intention to provide funding when it becomes available, you should use your judgment on whether to utilize these programs until SCNA is able to confirm funding is in place,” Saab Cars North America COO Tim Colbeck said in a memo sent to dealers.
Colbeck apologized to dealers for the delay and said that Saab Cars North America will return to more timely payments to dealers as more regular funding is arranged. Payments to dealers have been delayed since last Thursday, a Saab spokesperson said.
The notification came after General Motors, former owner of Saab, announced it would not approve a rescue deal between current owner Swedish Automobile NV and the two Chinese companies trying to acquire the brand, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. Saab currently has 182 dealers in North America, down from 200 a year and a half ago when General Motors sold the brand.