- Saab Cars North America on Wednesday said that it is in "wind-down" mode, even though it so far has avoided formally filing for bankruptcy.
- Saab's U.S. arm has appointed an independent third-party administrator.
- The odds of avoiding liquidation are "not very good," said Tim Colbeck, Saab Cars North America president and chief operating officer, adding, "but surprises are always around the corner."
ROYAL OAK, Michigan — Saab Cars North America on Wednesday said that it is in "wind-down" mode, even though it so far has avoided formally filing for bankruptcy.
But the odds of avoiding liquidation are "not very good," said Tim Colbeck, Saab Cars North America president and chief operating officer, adding, "Surprises are always around the corner."
Saab's North American arm has appointed McTevia & Associates to serve as an independent third-party administrator. The Bingham Farms, Michigan, firm specializes in turning around troubled businesses, according to its Web site.
"What that does is, by putting this independent third party in place, we assure creditors that everyone will be treated fairly," said Colbeck during a media conference call. "At certain points in time, it could transition to something like a liquidation. If creditors are uncomfortable, they could put us into a court-supervised bankruptcy or we could do it ourselves."
Colbeck described it as a "sad chapter here for Saab," following Monday's announcement that the parent company filed for bankruptcy. He said that dealer vehicle inventory in North America is around 2,400 cars.
The call was marked by considerable confusion, with Colbeck saying he didn't know whether those remaining cars could be sold as new or used.
"We're looking into it," he said. "The plan to dispose of inventory is premature. We have a dealer council meeting later today to discuss strategies."
When asked how long Saab Cars North America can operate, Colbeck said: "We're all figuring that out. We're trying to make sure our creditors are protected. Probably can't share details financially at this point."
He also said that Saab Cars North America is "aggressively looking at ways to reopen our warranty business." It suspended warranty coverage yesterday.
Saab's bankruptcy filing in Sweden did not automatically include a similar filing here.
Colbeck said the "best and most appropriate course is to keep this action out of court" in order to preserve "the most value for stakeholders."
Saab Cars North America so far has not filed for either Chapter 7 bankruptcy, which means liquidation and the end of the road, or for Chapter 11 bankruptcy, which provides a process for the reorganization of a business under court supervision and protection from creditors.
Colbeck's first public remarks capped a grim week for the Swedish automaker, which is controlled by Dutch-based Swedish Automobile, formerly Spyker Cars.
Saab announced on Monday it had filed for bankruptcy in Sweden after General Motors rejected its latest rescue plan, effectively blocking a small Chinese automaker, Youngman Lotus, from getting access to key technology. GM has remained a stakeholder and supplier to Saab.
Colbeck was asked whether he was angry that GM threw a wrench into the rescue plan.
"Angry is a strong word," he said. "I'm disappointed. I would have liked to see a different outcome. No, life's too short to be angry. We've got to move on and do what we can to keep the brand going."
Inside Line says: Saab Cars North America appears to be slipping, like its Swedish parent, into a death spiral.
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mainesaab says:
02:54 PM, 12/31/2011
Oh , what are we to do? Having owned and worked on saabs for almost 30 years I believe the 9-5 is one of the best cars on the road . This car is the best used car the third time around, safe,good on fuel,and cheap to maintain IF you know a good saab Tech. My big issue is what goes wrong on these cars WHO is it saab or gm. Headgaskets,pcv ,fuel pumps sids,serp belt pulleys, v6tensioners, I may be wrong but i dont think there is alot of gm in the high failure items? Oh by the way I have removed turbos and the cars are very driveable,and alot less engine issues,Lets hope thay come back soon,and with a dependable car for drivers not cell phone apps
seansean2 says:
09:26 PM, 12/26/2011
Whoever says GM AKA Communist "Obama" Motors is not to blame is obviously in denial. Of course Saab's market share was not profitable. This is BECAUSE of the damage done to Saab's image and engineering methods by GM. Thing is, "GM technology" is what RUINED Saab to begin with. As if GM made BMW-grade engines that they had to safeguard.
euromerican says:
06:28 PM, 12/26/2011
For those saying that Saab is a re-badged this or warmed-over that:
The 1994-98 900NG and 1999-2002 9-3OG were on the GM 9200 platform and the 9-5 was on a lengthened version that they deemed the "9202". While other cars shared this platform, none of the others had the Saab "H" engine (B model line).
Cars made on the 9200-2 platform for the NA market:
1994-1998 Saab 900, 1999-2002 Saab 9-3, 1997-2009 Saab 9-5, 2000-2005 Saturn L-Series
Other GM X-brand Vectras and Calibras occasionally used the C20LET turbo engine provided by Opel. But those aren't NA market cars...
And then the switch was forced upon Saab to go to the Epsilon platform using the Opel-innovated Ecotec engine. Personally, I'd rather still be using the EcoPower H engine, and do. :)
The truth is, that GM sourced a hell of a lot of tech from Saab while making almost no effort to properly steward the company.
GM was even shadier in their selling of the H engine (truly Saab's intellectual property) to the Chinese BAIC while in talks with Spyker. Then GM holds their crap tech over Saab's head, knowing that they've already cut the legs (and fall-back tech) out from under Saab. GM got paid, and Saab got screwed.
I'm not too worried - yet. 10 or 11 companies still have interest in Saab, with Koenigsegg again coming up in discussions. Saab will hopefully live on, and if they don't, I'll just wait for Alfa Romeo's Giulietta to come over to the States.
Either way, GM has created a whole bunch of anti-GM proselytizers through their handling of the Saab sale.
Before you say anything about a car sharing platform with other makes, you had better look to see what platform you're driving on and how many other makes share it. This is the present state of the over-populated global auto market. Few unique platforms, many makes.
andallthatjazz says:
08:30 PM, 12/22/2011
I owed a SAAB 2001 9-5, loved the car but, oh those electrical problems. In 2007, I moved to a GM Cadillac CTS, loved the car, but when the lease was up, in December 2010, fell in love the the new SAAB 2010 Aero and bought it. As much as I enjoyed my CTS, which was quite a bit, I've enjoyed the SAAB even more.
I still can't believe this outcome. The car drives wonderfully, whether it's in heavy traffic, through the canyons of Los Angeles, or on a 200 miles trip up the coast. It's such a shame that my perfect car is now an orphan. Hopefully GM will find a way to cooperate with SAAB USA so customers like me are not left stranded. With a warranty and parts, I'd gladly keep this car for a decade. Without them, I'm going to be looking to sell ASAP. Will GM consider a plan for customers like me who have been Cadillac customers, moved to SAAB, and are willing to consider buying a Caddie again?
cardesigner82 says:
02:44 PM, 12/22/2011
GM did not ruin SAAB. If it was ruined, Spyker would have NEVER bought the company. GM turned out some really good concepts. Had it had the funds & time to turn its concepts into production vehicles, it may have a different ending. SAAB, just did not have a profitable market-share...end of story.
SAAB had a great vehicle in the 9-3. You CANNOT knock it unless you've driven one!
openeyes1 says:
09:54 AM, 12/22/2011
@poorjoe; I own 2001 9-3 hatchback, its basically a Opel Vectra hatchback with a SAAB body, assembled in Sweden. The handling of this vehicle is very tight, much like a German car, it doesn't have the vague steering that most GM vehicles suffered from in the past. Its too bad that GM doesn't lean more and more on their OPEL subsidiary for full size hatchback designs.
saab952_3turbo says:
05:40 AM, 12/22/2011
That's not entirely true, there over the course of the last few models, there have been more and more American parts added to SAAB, however roughly 85-90% of the cars have been European.
poorjoe says:
03:46 AM, 12/22/2011
It's been a long time since any Saab sold in the US was a "European" car. Warmed over Malibu left overs do not a luxury car, make.
Saved Again and Again, Bye...
angry_mushroom says:
01:53 AM, 12/22/2011
Meh... Nice to see Saab NA still trying to deliver to their customers. The try to uphold warranties says volumes. They could just walk away, but they are trying.
saab952_3turbo says:
12:46 AM, 12/22/2011
I guess this truly may be the end, goodbye my friend. I hope to see you sometime in the future, until then I will have to find a new European car to ride around in.