When GM declared bankruptcy the US Government set up a special fund to secure warranty coverage for new vehicles sold. The lack of a warranty, they argued, would discourage consumer spending so they set up a $360 million fund under the name GM Warranty LLC.
When Saab declared bankruptcy yesterday one of the biggest questions was "what will happen to the warranties?" With no company rushing in to save them and no particular interest from the US to back a niche carmaker, the outlook wasn't so good.
And now it's confirmed: Saab has officially suspended warranty coverage on all new vehicles sold in North America. Dealers have been instructed to remove the warranty card from all new vehicles on the lot as new Saabs are now sold "as is."
They will "suspend the processing and payment of all claims including but not limited to: New-car warranties, powertrain warranties, emissions warranties, parts warranties, safety belts, airbags, towing, recalls and campaigns, certified pre-owned coverage, Goodwill, no charge maintenance."
Saab is instructing owners to "keep receipts of all related warranty work done or services performed until further notice." You know, just in case.
Whether or not there will be reimbursement is a decision that will be resolved in the next few days said an Ohio dealer to Automotive news. Unfortunately he finished with "As a dealer, today I am planning for the worst. We will assume that we won't be receiving reimbursement."
Saab is currently sitting on 2,400 cars in the U.S. Anyone going deal-hunting today?
hondacura4 says:
10:45 AM, 12/20/11
This is a joke right?!
paublo73 says:
10:50 AM, 12/20/11
I came close to picking up a 9-3 for a screaming discount when the whole GM bankruptcy situation was in full swing. The prospect of the value dropping like a rock and the uncertainty of future warranty coverage made me think twice. Looks like I was right unfortunately.
htr_hardtech says:
10:52 AM, 12/20/11
wow... glad I bought from a GM spin off when they killed pontiac...
sniperruff says:
10:56 AM, 12/20/11
It's true:
http://cgi.ebay.com/ebaymotors/2011-SAAB-9-3-CONVERTIBLE-HUGE-SAVINGS-/300639876315?pt=US_Cars_Trucks&hash=item45ff8874db
Warranty: No
Unfortunate for Saab.
ctpaul says:
11:02 AM, 12/20/11
so is a new Saab sans warranty a super bargain or a super risk?
ctpaul says:
11:03 AM, 12/20/11
Also I assume a smart dealer will offer a private warranty, whcih are big profit centers for them anmyway.
zoomzoom22 says:
11:03 AM, 12/20/11
$35k is still way too much for a car that looks 10 years old, inside and out. what a shame
csubowtie says:
11:23 AM, 12/20/11
Saab had some decent looking cars last time we went looking, but that was years ago, and all the ones we liked were too expensive. I wonder how low you could talk them down now?
greenpony says:
11:55 AM, 12/20/11
With production stops and starts, a (likely) unmotivated workforce, and no financial backing... you won't find me buying a new Saab except at maybe 80% off.
stoppre75 says:
12:12 PM, 12/20/11
Not a good day to be a car dealership with an "as is" Saab on the lot.
ptcdawg says:
01:57 PM, 12/20/11
50% off sounds like a screaming deal to me. I doubt they'll be that much off though. As others have stated, the aftermarket is ready and willing to warranty things.
brn says:
03:25 PM, 12/20/11
I bet they have a lot of motivated employees, making sure quality is job one! Then again, maybe not.
ctpaul has the right idea though. Buy a warranty from a quality warranty firm. Without having a factory warranty to back it up, it'll cost more, but it might be worth it for the right buyer.
jrcarch says:
04:07 PM, 12/20/11
You Insideline people need to grab 15k in bills and go to a Saab dealer and slap it down and say "what can you do for me" and keep the car in the long-term fleet!!!!
daskiing1 says:
04:27 PM, 12/20/11
+1 jrcarch
Charles River Saab is already marking $57k 9-5's down to $32k. Based on more than one person's account that I know of though, I'd say no warranty is a risky proposition. Damn you GM for killing a great car company!
wjtinatl says:
06:26 PM, 12/20/11
No warranty is only half the problem. No parts will be the big issue. I'm sure there's a warehouse of new SAAB parts somewhere but I'd hate to own a new 9-5 that gets in a small fender-bender and needs say... $3k of those small components that make up the front end of any new car. Personally, I can't see buying a SAAB now at any price.
ctpaul says:
06:37 PM, 12/20/11
Only Saab that there would seem to be any likelihood of parts availability is the GM SUV one built in Mexico, the 9-4? Which actually looks OK if you are into the GM SUVs.
beenieboi says:
07:41 PM, 12/20/11
I have to agree with the poster regarding parts. I realize that the distributors are seperate entities usually but that said, parts for saab's weren't cheap to begin with, start dwindling that supply and I think we can all guess where things will go from here. Sad, considering the potential that company once had, especially having been given the opportunity to step out of big GM's shadow. So long to a once great company, you'll be missed.