Just yesterday we reported that Saab has announced that it will not honor any warranties effective immediately and they also advised their dealers to sell off the remaining cars ‘as is.’

This news will surely anger anyone who currently owns a Saab that had some warranty left on it. However, General Motors is coming to the rescue, sort-of. GM is reaching out to those who bought a new Saab before February 2010. These cars were marketed and sold under GM’s ownership of Saab.

In a statement by GM’s spokesman Jim Cain, he said; “In the event Saab cannot or will not fulfill its obligations to administer the warranty programs with its U.S. and Canadian dealers through Saab Cars North America or otherwise, GM will take necessary steps to ensure that remaining warranty obligations on Saab vehicles marketed by GM in the United States and Canada will be honored.”

This act of kindness is very surprising, because GM doesn’t even like covering warranties on local-made products it considers was built by “old GM.”

So if you own a pre-2010 Saab, you’re in luck. However, for anyone who bought a newer Saab, it’s probably time to invest in a good used car warranty program.

[Source: Detroit Free Press]

Saab has officially been struggling for two whole years now, since its problems first came to light in December, 2009.

With time, it has seen some positive developments, but things don’t look any better for the foreseeable future.

A few months ago, Saab had received a court order that prevented its creditors to push the company into bankruptcy. It would use this time to reorganize. However,  Saab’s owner – Swedish Automobiles NV, has said that Saab and its creditors have just five to six days to submit their views to the district court in Sweden. The court will decide whether to end the reorganization and push the company into bankruptcy.

Despite attracting two major Chinese companies (Pang Da Automobile Trade Co. & Zhejiang Youngman Lotus Automobiles) to invest in Saab, there have been delays in getting the necessary payments from the Chinese, and production lines have been sitting still for almost an entire year.

Saab previous owner, General Motors also has some objections. Most of the technologies found in current Saab vehicles is licensed from GM, and it does not want to support a sale of Saab that could hurt its own position in China.

GM currently builds the 9-4X for Saab in Mexico. If GM pulls the plug on their deal with Saab, it would be impossible for the company to survive in its current form.

Stay tuned, as this drama is far from over just yet.

[Source: Automotive News]

According to Saab CEO, Victor Muller, a takeover offer of the Swedish brand by China’s Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. has been turned down.

Although initial talks were intended to aid Saab in raising capital, Muller explains during a Reuters interview, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”

Although the undisclosed offer was unsuccessful, the two Chinese automakers are still interested in Saab, committed to their 53.9 percent stake in the Swedish brand.

Addressing Saab’s plans if the Chinese companies walk away from the deal, Muller answers, “There is always a plan B.” However, keeping his cards close to his chest, Muller will reveal the details of the plan, “only if we resort to it.”

Moreover, an investment firm has also pledged an injection of capital, prompting the directing administrator in charge of Saab’s reorganization to request on Thursday for the Swedish court to pull the plug on Saab’s bankruptcy protection. Saab, having extended plants halts since March due to lack of money, avoided bankruptcy last month when the Swedish court granted Saab voluntary reorganization.

[Source: Automotive News]

After more than a year of struggle under Spyker’s management, many thought Saab would have succumbed to its financial woes already, yet somehow the Swedish automaker has been able to pull a few tricks out its bag just as it would seem that its luck had run out.

The latest reports indicate that Saab’s two Chinese suitors, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co., are aiming to complete an investment deal on Saab by the end of 2011. According to the lawyer of Pang Da Automobile, Peter Goes, “The deal can be closed before the end of the year. They [Pand Da] are most impatient on getting production restarted. The main interest of our client is getting the cars into China.” Getting production restarted is especially crucial as Saab’s Trollhattan assembly plant is currently at a halt due to money owed to their suppliers and workers.

The final obstacle hindering Pang Da and Zhejiang’s $245 million Euro deal is obtaining approval from the Chinese government. As the automotive industry within China balloons, the Chinese government has been reluctant to let it expand much further, at least not without their supervision.

When given the green light, Pang Da and Zhejiang will receive rights to distribute Saabs, and are in development for plans to assemble Saabs in China as well.

[Source: Reuters]

Poor Saab can’t catch a break. Last week Saab’s European supplier were putting pressure on the Swedish automaker to declare bankruptcy, and this week the car company has pulled out of next months Frankfurt auto show, due to a lack of finances.

A Saab spokesperson explained that the car-maker will concentrate its resources on restarting production at its factory in Trollhatten, Sweden.

Saab was forced to end production in late March because of financial issues. The Swedish automaker has been trying to raise more funds and has stated plans of restarting manufacturing in a few weeks, however the car brand has said this for months.

“Whilst it would be desirable to be at the show to help further Saab’s global presence, it is not considered an appropriate use of resources at this time,” a posting on Saab’s Inside Saab blog stated.

[Source: Automotive News]

Swedish Automobile, owner of financially-stricken Saab, is being pressured by European suppliers to declare bankruptcy, hoping the threat will pressure the automaker to pay back debts.

Saab production came to a halt in April, with suppliers refusing to deliver components because they were not being properly paid. Spanish auto panels maker Matrici S. Coop prepared a bankruptcy request, after being owed $2.8 million by Saab.

Lars Holmqvist, head of the European Association of Automotive Suppliers said, ”Some companies are waiting and having no answer. Now, some have heard that other companies have been paid partially. Then they are getting very upset. They realize there is no other way but to try to demand bankruptcy because obviously then Saab pays.” Lars also explained that he had been contacted by some German companies that were owed more than 5 million euros each. They too are also interested in pursuing the process to demand Saab bankruptcy.

Saab spokesman Eric Geers explained, “We know the situation we are in. We are working very hard to resolve this and to get a more stable financing in place.”

Earlier this year Saab’s employee union threatened to push the automaker to the bring of bankruptcy over unpaid wages to workers.

[Source: Automotive News]

Volvo is currently working on developing several green technologies including an electric C30, a flywheel hybrid system and a diesel-electric plug-in hybrid system. This week, Volvo announced that it’s working on a more ambitious project -three unique range-extended electric drive setups. Volvo is working with the Swedish Energy Agency and the European Union to develop this technology.

All three technical concepts utilize similar hardware- a three-cylinder combustion engine and a 111-hp electric motor but they differ in how the engine assists the electric motor.

Technical Concept I uses a modified Volvo C30 and the system consists of a 60-hp three-cylinder engine, the 111-hp electric motor and a 40-kW generator. The rear mounted engine turns the 40-kW generator that charges the car’s battery pack.

Technical Concept II also uses a modified C30 and utilizes a parallel-connected range extender. The rear mounted engine also turns the 40-kW generator. The engine and the electric motor operate in tandem. The engine powers the rear wheels and the 111-hp electric motor powers the front wheels.

Technical Concept III is installed in a European market V60 wagon and also uses a parallel connected system. Technical Concept III uses an electric motor and a turbocharged three-cylinder engine, with both units located in the engine bay. Both power-plants drive the front wheels through a two-stage automatic transmission.

[Source: Car and Driver]

A used car dealer in New Jersey is trying to make a profit off of John F. Kennedy Jr.’s Saab 900 by selling it for $100,000 on eBay.

For those of you that think the price is fitting, a 1994 Saab 900 in excellent condition and low miles typically would sell for about $4,700 on any used car lot. So this Garden State used car dealer is marking the price up by $95,000. This car was JFK Jr.’s daily driver at the time of his death in 1999, and has been stored ever since the tragic accident. The Saab has just 30,500 on the odometer and seems to be in pretty good condition. The car comes with all the proper documents proving the link to the Kennedys including JFK Jr.’s license. The dealer has also shown the respect and restraint one would expect from a New Jersey used car dealer, caps lock and all:

THIS IS ONE OF THOSE OPPORTUNITIES THAT COME AROUND ONCE IN A LIFETIME TO OWN A PIECE OF CAMELOT FROM THE KENNEDY DYNASTY. THIS CAR WAS PARKED FOR OVER 10 YEARS, BUT ONLY UNTIL NOW IS IT BECOMING AVAILABLE FOR SALE….

JOHN F. KENNEDY, JR. WAS A BELOVED PERSON THROUGHOUT THE WORLD, IT IS THE FIRST TIME THAT HIS PERSONAL VEHICLE IS BEING OFFERED FOR SALE. IMAGINE ACTUALLY OWNING THIS VEHICLE IN YOUR CAR COLLECTION, MUSEUM OR SIMPLY IS THE BEST CONVERSATION PIECE EVER. WE ARE SURE THAT YOU CAN FIND MANY VIDEOS ON YOUTUBE SHOWING JOHN AND HIS WIFE CAROLINE GETTING IN HIS SAAB ATTEMTING TO AVOID THE PAPARAZZI IN NEW YORK CITY.

So far there are no offers with eight hours left in eBay the auction.

[Source: Jalopnik]

Union employees working for Saab are growing impatient after the automaker said it could not pay wages to its workers because it had not yet obtained necessary short-term funding. The unions have threatened legal action that could end in bankruptcy for the automaker. The IF Metall and Unionen groups will send a formal demand for payment this Monday if their members have not received their unpaid wages. ”Then the company has seven days to react,” IF Metall representative Veli-Pekka Saikkala told Reuters. “After that there are two alternatives. Either we see that the situation can be solved, or we demand that Saab is put into bankruptcy.”

A rescue package for Saab has been set up by two Chinese car companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co, which would solve longer-term financial issues, however this still needs to be approved by authorities in China and Europe.

Bankruptcy is still very possible for Saab and “The company is in a downward spiral. The longer it takes, the tougher it gets. The longer it takes, the more potential buyers will leave,” said analyst Martin Crum at Dutch Broker AEK

Saab stopped production in April because of payment disputes with suppliers and only briefly restarted production for a week at the beginning of June. So far Saab owes at least $47 million to Swedish suppliers, and the longer the Trollhatten plant is at a standstill, the deeper the hole becomes for the automaker.

[Source: Automotive News]

Saab’s ongoing drama will remain at a standstill for another two weeks. Saab’s Trollhattan factory in Sweden, has not produced vehicles for most of April and May because of issues regarding paying suppliers. The factory bounced back in late May, but was quickly forced to stop production when part supplies ran out yet again.

“There will be no normal production during weeks 25 and 26 (June 20th-July 3rd),” Saab spokeswoman Gunilla Gustavs said.

In the last few weeks, Saab made agreements with two Chinese Car companies, Zhejiang Youngman Lotus Automobile Co and Pang Da which, if approved by Chinese governments, will solve its mid and long-term financial issues.

“We are still negotiating with all suppliers and we need to get everyone on board at the same time,” Gustavs said. “The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks”.

Saab has spoken with Swedish property company Hemfosa on a sale and leaseback deal for the Swedish plant. Hemfosa was prepared to pay around $46 million for Saab’s properties. If this quick sale goes through, Saab will have the finances to restart production.

“There is nothing new that we can communicate,” Gustavs said on its building sale plans. “That is still being negotiated.”

[Source: Automotive News]