Top Nice Cars: Saab

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Saab Dealers Abandoning Ship as Liquidation Looks Inevitable

Three weeks ago, the receivers that handle Saab’s assets after the company was officially declared bankrupt confirmed that there are many parties interested in acquiring the Swedish carmaker, or whatever is left of it.

Up until now, no offer has materialized and with each passing day, the chances of the Trolhattan-based company becoming history are increasing. Therefore, Saab’s 900 dealers around the globe are looking for alternatives.

You may remember our Saab post from earlier this week where we asked you if you'd buy 9-3 or 9-5 sedan at half price. Among the deals we listed were several low mileage loaners with a 50 percent discount from the Shaw Saab dealership in Norwell, Massachusetts.

As we learned today from the Saabsunited enthusiast site, the aforementioned dealership is closing shop on February 3 after 44 years as an exclusive Saab seller.

Fred Shaw, the owner, posted a letter on the company's Facebook page where he announces the shut down and outlines his future plans, which include the selling of the real estate to Herb Chambers (the car shop equivalent of Dunkin Donuts in Massachusetts), who will turn it into a Lexus shop.

Nothing unexpected there, but in his letter, Shaw also refers to General Motors and the role it played in the outcome of Saab's failed reorganization efforts. Being an official dealer, Shaw's view on the matter makes for an interesting read. You can check out the letter right after the break.

Ever since we learned about Saab's bankruptcy, many pondered whether it would be a good idea to buy a brand new or a very low mileage example from dealers that wanted to get rid of the cars they had in stock at marked down prices.

The problem is that these cars are offered without a manufactures warranty while we're still not certain what's going on with parts, because sure you can get an awesome deal, but what happens if something breaks or needs replacement on your car; will you find a part in a timely manner and equally important, at what cost?

It's good to keep in mind that being an older model, it's much easier to find replacement parts for the 9-3 series than it is for the newer 9-5.

Lots of questions not too many answers, and this is something that will likely make most mainstream buyers wary.

What we can say is that over the past few weeks that we have been following the subject, prices of the remaining Saab cars in the U.S. have dropped significantly.

This is your daily update on the story that is the survival of Saab. Today, we receive news that yet another party is interested in acquiring the Swedish car company, the third in as many days.

Swedish newspaper Dagens Industri confirms last month's report that Indian conglomerate Mahindra & Mahindra is also interested in Saab. Mahindra, which already owns Korean carmaker SsangYong and wants to become “India’s first global cult brand”, joins China's Youngman group and Turkish private equity firm Brightwell Holdings in bidding for Saab.

Saab hasn’t made a car since last March. Its initial deal with the Chinese fell as did every subsequent overtake attempt basically because GM wasn’t willing to give away its technology to the Chinese for free.

Eventually, the company's owner Swedish Automobile ran out of cash and Saab filed for bankruptcy on December 19. The receivers walked in and made preparations to sell the silverware – or so to speak. Sad, but true: Saab has gone the way of the dodo. End of story, right?

Well, surprisingly enough, now that it is being torn apart, suitors come knocking on its door two at a time. Just hours after Youngman’s latest bid, Turkish private-equity firm Brightwell Holdings is the second company that will bid for the bankrupt carmaker.

Declaring bankruptcy doesn’t necessarily mean that you close shop – just ask GM and Chrysler. But when the receivers walk in begin selling off your assets, though, as is the case with Saab, it would take a miracle (to say the least) to survive.

Then again, perhaps miracles do happen. Reuters reports that Chinese group Youngman, which had originally agreed with Saab's owner, Swedish Automobile, to buy the brand and had even injected some cash into it but saw the deal fall apart due to GM’s refusal to let its intellectual property fall into the hands of its rivals, is ready to make a comeback.