Saab Cars North America has begun sending out letters to Saab daelers telling them of their fate under the new entity.
81 current Saab dealers will be Saab dealers no more.
Automotive News has the details:
GM said in a letter received by dealers today that Saab's buyer, Swedish exclusive sportscar maker Koenigsegg, selected the surviving stores. Koenigsegg will operate the brand here through a new entity, Saab Cars North America Inc.The target date to close the sale of Saab is Nov. 30, but it could take until year end, says Mike Colleran, COO of Saab Cars North America in Detroit.
"SCNA did make its selection of (go-forward) dealers based on our business plan and the needs of that plan," Colleran says. "Essentially, we're looking for strong dealers who have good profitability and good throughput."
Location also factored into the decision, he said.
GM sent letters out through Federal Express on Wednesday to rejected dealers, GM spokeswoman Ryndee Carney said. Saab will have 137 U.S. dealers after the sale.
All Saab dealers signed a termination agreement in June when GM entered federal bankruptcy protection, Carney says. The terms of those termination agreements will go into effect for rejected dealerships.
If the deal to sell Saab falls through -- as GM's deal to sell Saturn to Penske Automotive Group did -- GM would close Saab and all the dealerships would be terminated, Carney says.
The surviving dealerships will remain under their current dealer contract with GM until it expires in October 2010, Colleran says. Then they will get new franchise agreements with Saab Cars North America.
OK, so that last sentence is a little confusing. Djup Strupe tells me the letter actually quotes a deal date around the end of November, which makes more sense.
81 dealerships is a lot to lose. When you consider that they're aiming to sell MORE cars, that they'll only have 63% of their previous dealership base (by number, not necessarily by sales or quality) AND that the cars will likely be a bit more expensive, it can only mean one of two things.
- The cars are going to be absolute killers, or
- We're in a shipload of trouble.
I vote for option one. Here's hoping.

Fewer dealers = more cars sold for the remaining dealers => better profitability and hopefully being able to service the customers better. Have been GMs problem in general. selling the same nr of cars as Toyota but doing so with 3 times the nr of dealers. A good formula for many average dealerships... If you want to go premium everything has to be, so its the right thing and doing it now will be a lot easier than later (and they can always add a dealer in the future if they want to).
A question thou, would like to know how many of these dealers that are having saturn / hummer as their 2nd brands?
Lastly, note that the entity is called "north america". Presume that it will include canada / mexico then?
There is one thing I don't understand, the rationale and position of being a rejected dealer, a (financially) unprofitable dealer. I feel for them. I really do. I'm in the Washington DC area and the dealerships we currently have are few and far between.
In the future, If I want to be able to afford a new Saab, I have to earn A LOT more money than I'm currently making. I'm already working hard.
They need to sort this out quickly. I reckon a dealer in Vancouver, Kelowna, Calgary, Edmonton, Saskatoon, Regina, Winnipeg, Thunder Bay, Ottawa, Montreal, Quebec City, St John, St Johns, Halifax and three to four dealers in the Toronto-Windsor corridor should do it.
I reckon Canada will probably fall in under Saab Cars North America.
Like I said yesterday - Classic Saab in Mentor is winding down and they are happy not to have to deal with the brand anymore, although a lot of that has to deal with their feeling toward GM. They are so unhappy with GM they have also voluntarily closed a Buick/GMC point and turning it into a Kia franchise since Kia "builds cars that sell."
Not good.
Saab has the potential to be like Acura here in the USA - quality cars sold through a QUALITY dealer network. And Acura's have gotten really ugly... :)
The same goes for brands like Smart and Mini, all of which sold more than Saab last year. The new Saab doesn't want to oversupply the market and have to use big price cuts in order to move inventory. That's bad for both them and dealers.
My only concern is that service will be harder to come by. What's kept me from considering a Mini is that the closest place to get service is 70 miles from my home. I pass two Saab dealers on the way. But if Saab sets up satellite service centers (like they had in the '90s) I think customers will be well served.
I could certainly see the new Saab wanting to pull out of multiple brand dealerships, especially if that "extra" dealer was also attached to a Hummer dealership. There is potentially some dealer overlap in the New England area, too -- I can see the worst performing dealer in a multiple dealer market getting cut.
For Saab to succeed, the dealers need to make money. I'd rather Saab-North America start out lean with profitable dealers than the other way around.
Let's wait and see.
in Toronto right now there is only Budds and Queensway. And the Queensway told me that they would be the only Saab dealer in Toronto after the deal is done. So that means by to Budds (who also sells every other car known to man) and the one down in Burlington. Maybe the London one stays open. Same with the Ottawa dealership, I bet only the one out near Scotia Bank place makes the cut.
Dave
in Toronto right now there is only Budds and Queensway. And the Queensway told me that they would be the only Saab dealer in Toronto after the deal is done. So that means by to Budds (who also sells every other car known to man) and the one down in Burlington. Maybe the London one stays open. Same with the Ottawa dealership, I bet only the one out near Scotia Bank place makes the cut.
Dave
SAAB doesn't need to be tied up in a Cadillac or Buick dealership where maybe only 2% of cars sold would be SAAB.
The good news is that SAAB:NA will get a very focused dealer network.
SAAB cars North America have a year to find new businesses who wish to employ dedicated sales staff instead of what is likely at present. Of SAAB being a small side-line option in a multi-franchise setup.
-Anxious in Anchorage
WooDZ said it very well as did Greg... but my point is this.
I just hope Koenigsegg does not try to make this brand TOO exclusive...
They still need to offer cars at all three levels... Entry,mid and premium if they want the brand name to become as well known and as wanted as Lexus and BMW.
stress the safety of the car, the quality of its build, the support of the dealers... (and hire Swade as a Public Affairs/Marketing person) and Saab will be ok
If you are referring to International Saab in Falls Church, I (personally) find it unlikely that it will close. This is purely anecdotal, but I think the DC area is a fairly strong market for Saab -- at least in comparison to other areas of the country more hard-hit by the economic woes. I see a lot of Saabs out here on the roads daily.
Of course, this is just a guess.
But I suspect International and VOB Saab in Rockville will both survive. I think a Fitzgerald franchise somewhere (Frederick maybe) used to sell Saab but at last check they had only 4 vehicles listed on their website.
Needless to say, I hope International hangs on. I've spent a lot of Friday nights eating with my family at Elevation burger and then roaming the Saab lot next door, dreaming.
The dealership in San Antonio, is a Sewell dealership, so the service is the best around. It is tied to a Cadillac Hummer, but each brand has its own separate showroom....should be interesting.
I don't blame SCNA from shutting down dealers that don't perform but I would like to see a list of dealers that they are closing.
Another local dealer that I wouldn't mind seeing go, is part of a Cadillac dealer.
I would understand if they wanted to keep only stand-alone SAAB dealers.
I wish that closure list was public!
BTW, I forgot about Brewer and I agree about Fitzgerald; but VOB being a great dealership? The sales and service department, didn't treat me that well. That's the reason I purchased somewhere else. When I needed my bumper repaired, VOB's body shop treated me so much better. Anyway, I too hope VOB makes it, especially International. I think they're one of the better ones.
@Sapan & James, about 3 years ago International had a 2002 Viggen with less than 80K miles.....for (I think) approx. $12K. Too bad, I couldn't afford it then.
For GM/Ford/Chrysler they have been shedding dealers like crazy, but there are thousands of them and not far apart. But a lot of people are not going to drive 50 or 100 km to go to their dealer for warranty repairs!!
yippie!
Can SAAB owners who are concerned about losing their preferred dealers write to SCNA or SAAB and bypass GM.???