Saab Struggles for Survival as Dealers Quit

Jan 8 2012

Two thirds of the dealer network of Saab UK have already dropped or are intending to drop the franchise after the extended fight for survival by the Swedish brand.  One Saab dealer, who wished to remain anonymous, told AM Online that of the 58 dealers that were once a part of the network, barely 20 are expected to be sticking with the company whilst the remainder have "left or are searching for the exit."

Saab UK went into administration on the 29th November last year, with parent company Swedish Automobile having until the 15th December to acquire more money from their investors in China in order to enable it to continue restructuring.  Approval of a deal from General Motors, the company's former owners, is vital because it is in possession of key production contracts and technology licenses.

Guy Lofalk, the administrator of Swedish Automobile, has advised the court in Sweden to put an end to the firm's voluntary organisation, which will also have the effect of ending its protection from creditors.  Saab has also managed to incur a further €3.3 million in debt according to Lofalk, something which is not allowed for firms that are under court protection from creditors.

Saab GB meanwhile is believed to have as many as 200 new cars and 800 approved used cars in stock, with dealers having been told that bonuses will be honoured.  The Managing Director of Cambridge Saab, one of the dealers who is sticking with the brand, James Howarth, says they do not want to "throw away" their history with the company.

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