Saab Kills Warranties On All New And Used Cars

Tallahassee, FL 12/12/11 (StreetBeat) -- Saab (Pinksheets: SAABF) filed for bankruptcy just yesterday, and already the fallout is hitting owners: all warranties on new cars sold or leased are suspended, as are all claims currently in process on already-owned Saabs.

The report, by way of Detroit News, cites Saab North America representative Michele Tinson, who advises warranties on new cars are suspended indefinitely, meaning all Saabs still on dealer lots can only be sold as-is, without any factory protection against defects or breakdowns. The suspension of current claims also appears to be indefinite, but it's not yet clear if that will hold as well. Bargain hunters may not care about the lack of a warranty, but it will certainly drag down the value of any remaining cars in stock.

Tinson did caution that it's too early to announce any further actions in the U.S., likely referring to the impending dealer closures, layoffs, and sell-offs that will have to follow if Saab can't find a last-minute buyer.

That's right--Saab hasn't yet given up. CEO Victor Muller says there's still a chance it could be turned around, that it may "rise from the ashes like a phoenix."

Or it may stagger on like a zombie. There are fates worse than death.

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Saab (Pinksheets: SAABF) Files For Bankruptcy: Official

Tallahassee, FL 12/20/11 (StreetBeat) -- It’s official. Saab (Pinksheets: SAABF), along with its Saab Powertrain and Saab Tools subsidiaries, has filed for bankruptcy with a Swedish court this morning.

Following previous owner GM’s recommitment over the weekend to block any deal for the purchase of Saab, Chinese firm Youngman has finally thrown in the towel and announced that funding to continue and complete the ongoing reorganization process could not be concluded.

Saab’s parent company, Swedish Automobile, subsequently decided that the automaker without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. The Swedish court overseeing the reorganization process has since accepted the bankruptcy application and has appointed two receivers to help sell off remaining assets and pay back creditors.

Swedish Automobile, led by Victor Muller, said it does not expect to realize any value from its shares in Saab and will write off its interest completely. It is believed that Muller personally handed in the bankruptcy application for the 64-year-old company.

As previously reported, Swedish Automobile had hoped to sell Saab to Youngman, which was willing to build up the Swedish brand into a full-line luxury automaker with new products such as an entry-level 9-1, 9-6X sports crossover and 9-7 flagship sedan. However, such a deal would involve the handover of several technology licenses owned by former parent GM, which fears they may end up in the hands of its competitors in the Chinese market.

GM has a number of preferential shares in Saab and this past weekend said it wouldn't approve any of the recently proposed new ownership structures, ending hopes of a deal to be secured before a court decision on the continuation of Saab’s reorganization process that was to be made today.

Saab, which directly employs about 3,700 staff, hasn’t built a car since April. Production originally stopped after suppliers, which make up most of Saab’s creditors, stopped delivering parts due to unpaid bills.

It’s a sad day for Saab fans all around the world but as we've seen in the past bankruptcy does not always have to mean the end of a brand--only time will tell.

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Saab Gets Last Minute Funding

Tallahassee, FL 12/19/11 (StreetBeat) -- Saab (Pinksheets: SAABF) is back in action! The Swedish automaker was just about to switch off the lights when a lifeline appeared from Chinese partner Youngman. Reuters is reporting that a Swedish newspaper stated that Youngman dealt out around $5 million to cover taxes and expenses, as well as another payment of $26.42 million that will show up on December 14 to deal with unpaid salaries. The Swedish automaker will also get $13.18 million by the end of the year.

At this point, it remains unclear if this new cash investment will help convince the Swedish courts to continue to protect the automaker from the creditors that are hungry for payments. Until now, Saab has been under the warm blanket of protection, thanks to the Swedish government. The courts are set to rule if that will continue on Friday.

There has been some internal conflict within the company, as an administration applied to have the company’s creditor protection removed, due to the fact that the automaker no longer has any money. Saab has stated that this administration should be removed from the hearings. No matter the outcome or the evidence that leads to it, a decision will be made on Friday.

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