U.S.: GM Refuses to Cover Saab Warranties for 2010 and 2011 vehicles image

Saab Cars North America and 25 dealers have made up a plan to develop a parts distribution company and how to sell the 2,200 new cars from the Saab’s dealer inventory.

Saab asked for GM’s help to cover the warranty repairs for 2010 and 2011 models, but the company said it would deal only with the warranties up to 2009, the year of its bankruptcy and disposal of Saab.

“There’s a groundswell of frustration over GM’s conduct prior to its 2010 sale of Saab to the Dutch sports car company Spyker Cars NV.

The sentiment of dealers is that GM knew full well that Spyker wasn’t adequately capitalized and didn’t have the experience to carry the franchise forward,” declared Leonard Bellavia, attorney for the 165 Saab dealers

James Cain, a spokesman for GM, said: “Since the bankruptcy we’ve done a lot of work to be sure customers can get warranty repairs and that dealers can get paid to perform the work. But our obligation ends with the last Saab car built by General Motors and those were the 2009 models.”

Saab dealers still have 2,200 cars in their inventory plus 700 units at Saab North America.

The problem is that if these 700 are sold at fire-sale prices, it would affect the market for the rest of 2,200. Now the cars are being sold at 35% to 50% off.

  • Joe

    Screw you GM! Most every part in my car says GM! How's your bail out?

  • Chris

    Not mentioned is that GM killed a deal to purchase Saab prior to the bankruptcy. This purchase would have allowed Saab to continue and all warranties would be in force. This is why GM bears further responsibility in the warranty issue.

  • https://www.facebook.com/Rex.Armani Richard Armani

    Not at all. Victor Mueller bought the company from GM, he did not buy the current tech. No one would give away the technology that they paid millions and millions for over decades and allow the Chinese to cash in and start making Saabs using GM tech. This is why very few buyers came forward, they understood the risk. If Mueller had proper finances to keep the company operating this wouldn't be happening now…and he is trying to recoup the 400 million he paid Gm for Saab buy grabbing every desperate offer. Victor Mueller rolled the dice on Saab and came up with snake eyes…end of story and who cares really…if enough people cared and bought Saabs this wouldn't be happening either; no one would shut down a profitable car maker and that is something Saab has not been for DECADES.