Warning to Saab Owners: Get Warranty Work Done NOW

For the second time in a week, Saab’s headquarters factory in Sweden has been shut down because its unpaid suppliers stopped providing parts.  The shut down, and Saab’s apparently inability to overcome mounting financial difficulties, suggests the brand my be heading for bankruptcy.

When you buy a new car, it comes with a warranty from the car’s manufacturer; not from the dealer.  The dealer makes the repairs covered by the warranty only because the manufacturer pays it to.  So if Saab goes bankrupt and stops paying its dealers, the dealers will probably stop honoring the warranties.  Owners will still be able to get repairs done, and parts will be available for a while, but they should be prepared to pay for it all themselves.

Bottom line for Saab owners? If your car needs any warranty work, get it done ASAP. And then hope Saab survives.

Thank you to Ron Burge, a great Lemon Law attorney in Ohio, for flagging this issue.

Update:

May 27, 2011: The plant just reopened.

August 31, 2011: Union Warns Unpaid Wages May Force Saab Into Bankruptcy Within Days


Leave a Reply