Saab Bankruptcy: Warranties Suspended, Cars To Be Sold As Is

Saab 9-4X Grille

Hats off to Saab Chief Executive Victor Mueller and Company – they tried their best. After months and months on end of back-and-forth drama, the Saab story is over. The company filed for bankruptcy protection yesterday, after a deal between Saab and Chinese automaker Youngman Automotive was scuttled by General Motors due to concerns over patent protection.

It is a scenario GM was worried about back in 2008 and 2009 when discussions were ongoing to sell the brand to Spyker. From a purely business perspective, it makes sense. We’re still sad to see the beloved, quirky Saab go though.

For fans of the automaker who have been on a roller coaster, bankruptcy offers some closure. There is little consolation in though, especially for recent buyers of new Saab products (scarce as they may be). Saab sales have been depressed for the past few years, all down to the fact that no one wants to buy a car from a brand that is headed for bankruptcy.

When making a big purchase like a car, purchasing one from a near-bankrupt company just doesn’t make sense. That logic has proved to be correct. Autoblog has obtained a memo to Saab North America instructing dealers on what to do next. For one, payment for all warranty-related items is being stopped – likely for good. The money just isn’t there. If you bought a new Saab in the recent past, this is a major headache on your hands. In addition, your resale value just dropped a lot, after already being at record lows.

What about the inventory of new cars in Saab’s inventory? The company is instructing dealers to sell them “as is”, with no warranties expressed or implied. This is going to result in some really cheap new Saabs being sold. Without a warranty, it isn’t clear who is going to buy them though. We’re sad to write this – we hoped Saab would survive, even if they didn’t have the money to do so. What a shame…

Tony Pimpo

Tony Pimpo

Automotive Editor
Tony Pimpo is a young automotive journalist who lives in Northern California. He believes the future of the automotive industry will depend in a large part on the recommendation of enthusiasts and Generation Y. More than ever, automakers lately have realized the power of Gen Y. Not only in regards to buying power, but in driving opinion and spreading a brand’s message through the internet and various forms of social media. His appreciation for cars formed at an early age, thanks to his dad, who has always been involved with cars in different ways over the years. Tony has contributed to various websites in his pursuits, and is on staff at GMInsideNews, where he has been writing since the age of 12.
Tony Pimpo
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Filed Under: Car NewsSaab


  • josh

    yeah, this is really sad :-(
    I’m 16, almost a license-holder, and I love Swedish cars.
    Now that’s gonna be singular. Volvo.
    Would it be a bad idea to buy an old SAAB? Like a 2005 or 2008?

    • shle896

      I think a used Saab would be a nice investment. Unfortunately, they are kind of expensive to service, but the two I owned never gave me any trouble. They’re great cars!

  • shle896

    I have owned two Saabs in the past and I am heartsick over this news, frankly. I loved their quirkiness and how well they handled in the snow, not to mention the speed! My 9-3′s HAULED ass! There’s simply not another car out there that compares to it.

    I’m still hopeful that SOMEBODY will swoop down and buy them. The thought of Saab not existing is surreal.

  • foxbat

    Who will buy a new car without a warranty?
    Dealer should have a “buy one get one free” incentive.
    Then we can buy two. Drive one. Use the other one for parts.

    GM killed saab. GM should pay for all the warranty cost.
    Shame on you GM.

  • garyr

    Well im not surprised I had a GM saab 93 2001 worst car ive ever owned paying out weekly for repairs absolute rubbish only after GM took over and ruined a good car company.