MT Expert: Saab's demise is bad news for customers
After a long, protracted struggle, Saab has gone into liquidation, something that will have many Saab owners in the UK panicking and searching for their contracts.
It’s desperately sad that Saab has gone into bankruptcy, not least because a lot of employees have been left in the lurch by Swedish Automotive’s (formerly Spyker’s) stubborn streak, which has seen it fight tooth and nail for its company’s survival, only yielding on the brink of Christmas.
That’s probably left a lot of employees jobless – even though the writing has been on the wall for some time – which is sad and unfortunate, but there’s no point blaming GM.
Chinese manufacturers have copied Western manufacturers for years and it’s obvious that a Chinese takeover of Saab would have resulted in direct competition to GM brands in Asia from Saab models that rely heavily on technology pioneered by the likes of Vauxhall, Opel, Buick and Cadillac.
It obviously didn’t make sense for GM and it blocked any potential resurgence by Saab who, under Swedish Automotive’s ownership, never really had enough money to recover the brand from its sale by GM.
The repercussions for Saab owners in the UK could be quite significant – with warranties presumably becoming obsolete and it wouldn’t surprise me if the majority of Saab drivers find that their warranties have been dissolved as of now.
Manufacturer warranties are paid for by the manufacturer and if there’s no money in the pot there’s no-one to pay for the cover, repair and servicing.
Fortunately, Saab’s GM links and technology shares means that the majority of owners in the UK should be able to find replacement parts courtesy of Vauxhall and Chevrolet; however bespoke Saab pieces will be much harder to come by.
Things like wings, bonnets and headlamp designs will not be available en masse and customers will really have to shop around to source them and probably pay over the odds. Aftermarket manufacturers will step into the breach but it’s not likely to come cheap and the chances of getting a replacement Saab badge are slim.
This shouldn’t prove too much hassle for those after general repairs but anyone involved in an accident is likely to have to fork out more money than ever to cover the costs.
That could lead a lot of Saab owners, not keen on the hassle and expense of servicing and repairing their car, to look back to the market and try and shift their car.
The grim news here is that residual values will take a pummelling. With a shortage of parts likely to grip, would you be tempted to buy a used Saab?
That should mean a lot of very good Saab deals on both the new and used car market, but you’d be brave to try one.
Saab drivers who own their car on a PCP (Personal Contract Purchase) can probably breathe a sigh of relief. If they have fulfilled their end of the contract, they can hand their keys back to the finance provider and be done with the headache of resale or loss of equity – finance houses and companies will not have the same luxury.