GB buyers lost out of Saab manufacturer warranty, AM

GB buyers lose out of Saab manufacturer warranty

14/02/2012 in News, Dealer News

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GB buyers lose out of Saab manufacturer warranty

Saab GB customers have been left without manufacturer warranty cover following the administration of its Swedish parent company.

Saab Automobile Parts UK has been formed from the ashes of the British business and a small network of 84 authorised repairers will look to offer cover which will cover “90% of what was the original manufacturer’s warranty”.

Saab GB’s managing director Charles Toosey will now head up a team of 16 at Saab Automobile Parts UK.

Dealers have been told that AA recovery is still in place for the three years/60,000 miles and 12 months/15,000 miles dealer guarantee policies that have been supplied on all used cars will still be honoured.

One Saab service repairer said there should be a reasonable, though declining opportunity for a Saab service operation for a least a further two to three years, and maybe more for the die-hard specialist.

The dealer told AM: “We should soon be in a position to offer a guarantee funded by the individual dealer that will offer 90% cover of what was the original manufacturer’s warranty for the remaining balance of the original three year/60,000 mile warranty.”

The service network is expecting confirmation on how dealers can cover customers before the end of the month.

The dealer said: “The warranty will of course be of assistance in the sale of the remaining Saab demonstrators and new cars we have around us, the sales of which to date are holding up well in value with a better level of demand and interest than we might all have originally thought.

“We should also be in a position to offer a dealer guarantee policy to all those customers who already own a Saab that has now lost its original warranty.

"It will be at a cost and it will therefore be up to the individual customer to assess if they feel it appropriate.”

Bids are expected to come in for Saab’s assets from Chinese company Youngman Automobile Group and Turkish private equity firm, Brightwell Holdings.

Youngman is looking to acquire Saab’s Phoenix architecture in order use it as a platform to build its own models.

It has promised up to £473.3 million of future investment for new models.


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Saab GB

Following the demise of Saab - falling into bankruptcy at the of 2011 - the name continues here as Saab Automobile Parts UK, formed from the British arm of the business and a network of around 80 authorised repairers aiming to offer cover for "90% of what was the original manufacturer's warranty".

From March 2013 it also started promoting the sale of used Saabs after its used car locator helped generate 1,000 unit sales in 2012.

Saab GB's managing director heads up a team of 16 at the new company.

In September 2011 Saab Automobile won an appeal in a Swedish court to get the go-ahead for bankruptcy protection proceedings in the hope that this will give it time to secure a deal with Chinese investors.

A month later the carmaker secured a second round of funding, of £44.6 million, from US private equity firm North Street Capital to contribute to restructuring. Saab subsequently terminated its Chinese funding agreements.

On November 2011 administrators from Grant Thornton were appointed to Saab Great Britain, the UK's national sales company for the Swedish brand.

The company entered a voluntary administration following months of suspended production and tight liquidity at its global parent, Saab Automobile AB.

In the meantime, sales stalled. And in October 2012 Saab's dealer council disbanded, donating the balance of funds to sector charity BEN.

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