Saab Parts could be faced with legal action

December 28, 2011 in News

The dealership union in Sweden are considering legal actions against the Saab company Saab Parts. In a letter the dealership-organization explains the the following:

“The issue is warranty problems for Saab-owners.
The Swedish Saab dealerships are considering legal action against Saab Automoible’s company Saab Parts AB which is providing spare parts as well as dealing with after-market warranties. The reason for this legal action is that Saab Parts no longer according to themselves are willing to cover new-car warranty for the Saab customers.

They (Saab Parts AB) have informed us that they will no longer pay any for any warranty-issues performed by dealerships included in Saabs warranty obligations since the mother-company, Saab Automobile AB, has been placed in bankruptcy according to Peter Hallberg, CEO of the dealership-organziation.

Peter Hallberg states that in december of 2009 an agreement between Saab Automobile and the swedish Saab Dealerships was established that responsibility for spare parts and warranty work performed was transferred to Saab Parts AB. All warranty issues to dealerships and authorized garages has since then been paid for by Saab Parts. This is something that will now stop which will have consequences for customers of new Saab’s. Saab Dealerships have in good faith and in accordance to the agreement delivered new cars for a two year period in belief that the new-car warranty would continue to be valid in case Saab Automobile was to be placed in bankruptcy.

If Saab Parts stands firm by their decision to not pay any warranty claims, the Saab customers will be affected. The dealership-organizations view is that current warranty terms dictate that only private persons can pose warranty claims against individual dealerships. Cars registered on companies or business have in such no right to claim warranty which means that the majority of all newly sold cars during the last two years are completely without warranty cover.

The new owner of Saab Parts becomes the National Debt Office “NDO”, which has in the media stated that customers will not have to feel any worry about warranty, however the NDO has not yet claimed its pawn rights to the company, which means that right now a state of law-less country exists where only private people as some rights, according to Peter Hallberg.

As a counter move, the Saab dealerships are planning to buy the majority of spare parts from other suppliers than Saab Parts, which would considerably reduce the value of the NDO Pawn claim in the company Saab Parts.”

23 responses to Saab Parts could be faced with legal action

  1. If my local dealer starts buying parts from aftermarket suppliers, and it makes them cheaper, I”m all for it.

    • What’s the difference between aftermarket and OEM parts? Is there a significant price difference and how does one decide between the two?

      • OEM Parts has no Saab sign on. Price reduction is commonly 30-40%. The price reduction can be bigger on some parts.
        But there are some parts not available as OEM parts.
        OEM stands for Owner equivalent manufacturing. These parts are mostly the parts from the suppliers to Saab without Saab sign. But be carefull on parts as brake, that you don’t buy cheap Chinese crap.

        • You are incorrect, an OEM Part is a genuine Saab branded part. From Wikipedia:

          An original equipment manufacturer, or OEM, manufactures products or components that are purchased by a company and retailed under that purchasing company’s brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a replacement part made by the manufacturer of the original part. In this usage, OEM means “original equipment from manufacturer”.

        • Does this mean there are 3 categories pf parts, OEM, aftermarket and factory? How concerned should we be if Saab Parts AB were to fail? Thanks for clarification!

          • From the SaabSite;

            OEM – OEM stands for original equipment manufacturer. This part will be made by the original manufacture and should be the same product as the OES version unless product changes have made it better.

            OES – Original equipment Saab part. This part will be the same part that Saab installed on your car during the assembly process unless changes have been made to make the product better.

            AFT – AFT means that the part comes from an Aftermarket Supplier directly to us. In some cases original equipment parts and Aftermarket parts come from the exact same place. The only difference could be the box. Keep in mind that our experience with Saabs and parts allows us to make the correct choices for you when we send you parts. Our reputation is our most important “Part” we sell and for this reason you can be sure that any product we sell will exceed your expectations quality wise.

            • IE: Voltage regulator present 9-3:
              AFT: 87 USD
              OES: 297 USD
              Both are basically made by Bosch, but are distributed different ways…

  2. Parts pricing has begun to rise as the availability begins to fall. Economics in hand here. We can currently buy more OEM parts from suppliers who currently have them for less then we can Saab. The dealers we have called are myphed as what to do!? is beyond the current Saab state of affairs and thereby is able to currently repair Saabs with any Used Part, Aftermarket Part or OEM parts where available for way less then the same part that a dealership is forced to purchase from the manufacture and their sources.
    We are also have applied for our salvage license which will allow us to buy and sell cars to part out and sell parts world-wide.

    Albany Saab Shop / Albany Speed Shop is doing our best, like all the rest, to be proactive and find ways to keep the current Saabs on the road with whatever means are available to us for you!

    ALSO during this crisis Albany Saab Shop will offer a 15% discount on parts and labor for repairs that should be covered under warranty. Bulb replacement, wipers and the like will NOT incur labor charges for replacing.

    Keep your chins up all….

    Darryl – Albany Speed Shop

  3. Will this effect Dealers in US? Is Saab Parts is responsible for warranty coverage in areas outside of Sweden? There are many dealers, repair shops and aftermarket warrany companies that will fix Saabs…just can’t do it without parts.Saab Parts AB is our saving grace, things would go from bad to worse if they were to go under.

  4. I have just contacted Warrant direct (uk) who quoted me £355 for a luxury care pack warranty for my AERO 2008 for 12 months, which works out at £88 per quarter interest free and cover everything a saab warranty would cover. They also stated that because GM supply most components ie:- alternators etc for merc, vauxhall, saab, there will always be parts availble for some time. This has put my mind at rest although still have the dealer guarantee which again i have checked and still valid and no problems with claims.
    So all you UK saab owners, get a warrranty and get yourself to Sweden in Jan 2012, 1100 miles is nothing (shrewsbury to gothenburg)

    • That Saab was part of GM actually helps here. Many Saab parts are from the GM bin and so there should be no shortage. Also, because there are so many GM bin cars around the after market is pretty large. I never went to the local dealers, just way too expensive and I never got the feeling they wanted to work with me to keep the cost down, quite the opposite. I have an Indie workshop that is doing a great job keeping our Saabs on the road for the last 10 years and, yes, using many after market parts.
      I know that there are a lot of good Saab dealers out there, but there are also a lot of really bad apples that should have been weeded out immediately after the 2009/2010 takeover. These are dealers that were never interested in selling Saabs, as soon as Saab was sold they moved Saab to their backlots.

      • My local Saab dealer is one of these. They are far more interested in selling and servicing VWs (and let me tell you, their VW service bays are ALWAYS full). When I needed some specific Tech2 work done, the tech told me what I wanted COULD NOT be done. I argued with him, wasted a day bringing my car in. The service advisor said to make an appointment for a Saturday because they had a long time Saab expert that would come in only on the weekend. He did what I needed with the Tech2 in a matter of minutes.

        All their Saabs were put in the back out on the lot (no Saabs out front at all), and the Saab side of the showroom has had VWs in it for over a year now. Tragic.

        • Ha, that sounds familiar, are you on Long Island?

          Btw, it’s about time that the Tech2 becomes available to the general (Saab) public for a much lower price than it is going right now (~$6,000 for a basic flasher kit). Especially when the worst happens and the Saab dealers pretty much disappear we need to be able to do basic software maintenance ourselves.

    • I have a Luxury Care warranty from Warranty Direct on my 07 9-5. They are very good and settled a claim without hassle (albeit not a very big claim) only three weeks after I bought the warranty. I would recommend them. However, their warranty is not the equal of the Saab bumper-to-bumper warranty. Even with Luxury Care there lots of exclusions which a Saab warranty would cover (eg wiring, pipes and tubing, exhaust system, DPF and so on).

  5. exactly…..there is a dealer near me that shouldn’t have been given a dealership. I think if you want to keep your Saab on the road no-one will have a problem, engine wise but panels may be a different matter as a local maufacturer again close by has ceased making panels for export to sweden

    • True, panels are likely to be the problem. Must drive carefully… :)))

      Still, I’m sure within a few months the parts supply problems will be ironed out and we’ll be able to enjoy our Saabs again. Positive side, we’ll all be driving iconic, last of the line cars which will certainly become classics one day!

  6. I talked to the indie I used to use when I had a ’99 9-5 a few years ago and he’s happy to work on my ’08 9-3 convertible at a price way lower than my local Saab dealer, who I believe will be moving away from Saab soon. Seems the indie gets OEM quality parts at a great price, so, no worries for me. Anyone in the South of England who wants details, feel free to email me.

  7. If the dealers are correct, the result could be the bankruptcy of SAAB Parts AB or at least a big increase in the cost of their parts because they will need to generate revenue to fund warranty claims. As noted in several posts here, quality parts are already available for less from other sources. This leads one to suspect that the market won’t respond well to a large increase in parts prices from SAAB Parts AB. How will SAAB Parts AB survive if they have to cover warranty claims?.