Normally the last President’s letter from the current issue of NINES would be in this position, however, that letter was written on December 1st (see the reprint here) and a great deal has changed since then.

At that time, all systems were on track for an orderly sale of SAAB Cars to Chinese partners, on December 19th, all of that changed. GM made the statement that they would not supply intellectual property nor support a sale to any Chinese entity. Understandably, that changed the playing field for the Chinese buyers and they pulled out of negotiations. So, faced with unpaid worker wages and a pile of outstanding debts, SAAB Cars filed for bankruptcy with the Swedish courts.

In the US, SAAB Cars North America is a separate entity from SAAB Cars. They chose not to file for any sort of bankruptcy and are working with a 3rd party administrator to ensure fair distribution of assets. I view this as a positive sign for current SAAB owners and the dealer body. This means there is hope for a plan to continue business in some manner.

Warranties have been suspended—not cancelled at this time. I know that the staff at SAAB Cars North America is working diligently to resolve this issue. GM has stated that they will be honoring warranties for vehicles sold prior to February 2010, but they are working out the details on how to administer this task. SAAB parts deliveries in the US have been halted, but again, work is being done to reopen the supply lines to the dealers. Unfortunately, for the short term, we must be patient as the details are worked out. This is an unpleasant situation for all of us, but I know people are working very hard to resolve things in the fairest manner possible.

Nobody likes that this happened, not the dealers, SAAB Cars North America staff, the Swedish workers, and most of all our SAAB owners. However, at this time, negotiations are taking place in Sweden with an emphasis in selling the business as a whole and I’m cautiously optimistic that we will once again see new SAABs produced.

SAAB Club of North America will be developing tools to help you as an owner find service and parts for your existing vehicles. Options will be posted on the website as we have information. If there is a need that you think we can assist with, please don’t hesitate to contact me via the club's contact page. I will do whatever I can to help you within my power. As a SAAB dealership owner as well as your club president, my promise to you is to personally help promote the brand and enhance your ownership experience.

Sincerely,

Annette Adams
President, Saab Club of North America

Saab Cars North America to Pursue Out-of-Court Solution

ROYAL OAK, Mich., Dec. 21, 2011 - Today, Saab Cars North America has elected to pursue an out-of-court resolution for SCNA operations. The SCNA Board of Directors believes this is the best course of action to maximize the enterprise value for its customers, dealers and creditors. McTevia & Associates, a nationally renowned and respected financial advisor to companies in transition, has been chosen to direct the process. In the interim, SCNA continues its day-to-day operations.

"The SCNA Board's decision to explore all possibilities out-of-court is the most appropriate direction to take for customers, dealers and creditors," said Tim Colbeck, President and COO, Saab Cars North America. "By having an experienced, outside Administrator oversee the process, the interests of all parties are better served."

Most importantly, SCNA is committed to developing a solution that would provide warranty coverage for Saab vehicles covering model year 2010 and 2011 models. As has been previously reported, GM is honoring Saab warranties for model year 2009 and prior years, per agreements.

SCNA is aggressively investigating all options aimed at reinstating its parts business in North America in a timely manner. Saab Parts Company in Sweden remains operational and not impacted by the recent announcement regarding Saab Automobile AB.

GM Statement on Saab Vehicle Warranties in North America

DETROIT, December 20, 2011 - 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, General Motors 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.

Zeewolde, The Netherlands, 19 December 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vänersborg, Sweden this morning.

After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors. It is expected that the Court will approve of the filing and appoint receivers for Saab Automobile very shortly.

Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely.