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GM Will Honor Certain Saab Warranties

GM will not cover the warranty on the 2011 Saab 9-4X

When Saab announced that it was filing for bankruptcy this week, the automaker also stated that it wouldn’t be able to honor its vehicles’ warranties.  

GM, which used to own Saab, has announced that it will fill part of that gap. “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,” the automaker says in a press release.

But there are limitations. Cars.com says that that GM will only cover models that were purchased when GM owned Saab, which ended in Feb. 2010.

In email correspondence, James Cain, a GM spokesman, told Inside Line, “For GM, (warranty coverage includes) 2009 model year and earlier vehicles in the United States, plus a very small number of 2010s in Canada. Everything else is Saab's responsibility.”

So if you’ve purchased a Saab since Feb. 2010, you won’t be covered. That includes brand-new models like the Saab 9-4X crossover SUV, which didn’t go on sale until 2011. According to Inside Line, Saab Cars North America says “all Saab warranty reimbursements have been temporarily suspended until further direction from Saab Automobile AB,” but advises owners to keep their receipts. That applies to vehicles purchased after early 2010 and the 3,000 new models that are available now.

All new Saab vehicles are purchased “as is.” If you purchase a new model, it won’t even have a warranty booklet. Automotive News, which spoke with Saab Cars North America, says the booklet will be removed from the owner information packet.  

Shoppers willing to buy a Saab without a warranty could get a fantastic deal on a new model. Cars.com says prices should drop by thousands of dollars, and with the money you save up front, you could purchase a third-party warranty.

Edmunds, however, says these discounts might not happen immediately. “Consumers shouldn't expect a fire sale on unsold Saabs just yet,” says Edmunds.com Senior Consumer Advice Editor Philip Reed. “While incentives are no longer being offered for now, our research indicates pricing remains unchanged at Saab dealerships. Dealers are taking a wait-and-see approach since this situation is changing rapidly. But Edmunds.com analysts estimate that the True Market Value  price of new vehicles will be discounted by an average of 28 percent from MSRP — and as high as 33 percent in some cases.”

Shopping for a Saab or a different new car? Check out the U.S. News rankings of this year's best cars. Then, look for a great deal on a new car by checking out this month’s best car deals. You can also skip negotiating with a dealer by using our Best Price Program. Also, be sure to follow us on Twitter and Facebook.

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