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SA Saab owners safe

2009-12-21 14:51

Svetlana Doneva

Johannesburg - General Motors SA (GMSA) has undertaken to honour all warranties and after-sales commitments of its Swedish subsidiary Saab, after announcing the winding-down of the brand's operations late last week.

"We will honour all warranties and after-service commitments," a General Motors spokesperson told Fin24.com on Monday.

GM announced late last week it would shut down Saab. This was because plans to sell the division to Dutch luxury sportscar maker Spyker had fallen through, due to problems arising from the due diligence test.

However, Spyker had renewed its offer to buy Saab on Sunday, according to BBC News reports. Spyker CEO Victor Muller was quoted as saying he was "very confident" that the new proposal would result in a deal.

However, GMSA has already stopped importing new Saabs into the country. Saab vehicles were sold in 11 dealerships countrywide in conjunction with Isuzu, Open and Chevrolet. The only stand-alone Saab dealership in Sandton, Johannesburg has been closed down.

General Motors' failed attempts at selling Saab and the suggested shutdown have raised much concern in Sweden. AFP has reported between 8 000 and 15 000 jobs could be lost and serious consequences for subcontractors are also expected.

Saab has been unprofitable since 2001 and made up just 1.1% of GM's total global sales last year, according to MarketWatch.com.

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