Swedish Government decides to take full ownership of Saab Parts

December 5, 2012 in News

In the news today the National Debt Office and Swedish Government has decided not to sell Saab Automobile Parts AB to any other private company but rather to take on a full permanent ownership of the company and continue to run the company for a foreseeable future.

This is really good news for us Saab drivers and we can now look forward to stable ownership in the Parts company and in such I expect that solutions to a lot of the issues surrounding lack of parts can be accelerated.

Every since february 2010, Saab Parts was used as a pawn for the EIB loan issued to Saab Automobile AB.

Source: Tv4 Economy News

53 responses to Swedish Government decides to take full ownership of Saab Parts

  1. Stability is good, I guess. But I find it odd that the Swedish Government did not want to own a car company (in their words) but now they do not mind owning a car parts company. Perhaps if they had done more at the time to help Saab find additional financing, then they would not have to own a car parts company now.

    • + 100 !

    • Totally agree but also, the Saab Parts business has always been profitable so very easy to see why they want it.

      • Either that, or there were no buyers for it. It may have been profitable at one time, but think about it, you have a rapidly declining customer base from here on out, that you can do nothing about growing.

        • I say that when Nevs start moving cars and the EV2’s are rolling off the production line, they will purchase Saab parts from Swedish Government.

        • I have to agree with you scand on this one. I think that right now Saab Automobile Parts AB is simply not worth the sum they are asking for and from what I’ve heard that company is in need of further funding in order to build up its dealer network.

          However I do also believe that NEVS will put “Saab Parts” to good use in the future and can utilize the network that is now being built up and thus not have to do it themselves… The amount of Saabs out on the road is right now decreasing but I think it will start to increase again in a few years!… =)

          • Swegov may not be willing to sell at a loss, because then it would have to deal with all the political fallout of that loss.

            Easier to pretend on the books its still worth some inflated value, and kick the problem down the road.

        • That would depend completely on how collectible Saabs will be come in the future. Many British sport car companies survive today 30 years after the last car was produced. This that will depend on “us” right?

          • Prices for the parts though, to keep a Saab on the road, might be far more than most are willing to pay. There is a market value for British sports cars that my 2004 9-5 wagon will never, ever have. Most Saabs won’t. So if demand decreases and they jack up prices of Saab parts to be viable—-it will all implode.

            • Angelo,

              I need your advice as you tell it straight like me (you are awesome by the way). I have an ’06 9-5 Sport with 60k on the ODO. Nothing major just usual stuff such as DIC, pcv upgrade, window rollers (although I am still waiting for a rear bumper cover).

              It is my sole mode of transportation. Am I taking too much of a risk by keeping it knowing that important major parts will not be available? I want to keep it but I need to be rational about this.

              What would you do?

              Thanks brother.

              • I think that’s a really tough call to make. The issue is that the car is probably worth much more to you than you can ever get as a trade-in or sale to someone. Think about it: What would YOU yourself pay for a used Saab today? I would low-ball a seller to death, just as that would be done to me if I wanted to sell my Saab. So the value of that car is so diminished—-it might be worth keeping it and hoping for the best as far as parts/service goes. Another way of looking at it is that the value of the car is beaten down enough that if you sell it now, you’re guaranteeing that you will take a loss. If you hold the car—-it might run fine for a long time and if it doesn’t, you might be able to get the parts you need to keep it on the road at a reasonable cost. If the worst happens—-and you can’t get a part you need or it’s too expensive to fix—–you will take a bath later. It’s guaranteeing a moderate loss if you sell now or POSSIBLY taking a bigger loss later—-but maybe NOT losing at all. My decision would likely be to keep the car. Now, if the other side of that coin is that it’s your sole transportation and you want the piece of mind of having a more common car, probably more reliable—-you’ll have to pay for that piece of mind. I know someone on Facebook who got fed up with their Saab because of expensive repairs—–and ditched it. They are now in a late 90s Ford Escort—–a very reliable little cockroach (I had a clone of that car, a Mercury Tracer—-which my sister’s family now has because I sold it to them years ago. Great little cars.). Anyway, the guy bought this as a stop-gap car while he decides what he really wants. Fact is, he’ll probably have better luck with this car than the Saab, fewer repairs—-but not nearly the passion for driving.

  2. Is there anyway to know what years / models are covered with these parts?

    • Up through the NG 9-5 at least. I understand they now have bumpers and bumper skins. Still haven’t heard about the HUD/rain sensor/camera version of the windshield, but everything else seems to be out there.

      My question is … how about the body panels, bumpers and skins for the 9-4X? If not, is Saab Parts making an effort to move in that direction to build up a supply for the 467 copies or so of that vehicle that were made?

  3. well that’s good news for all OSC like us here in Ottawa. Parts availability will, hopfully, be an non issue for me and all of are customers.

  4. Why the Swedish Government did not support the car company? The take over of the ownership of Saab parts makes no sence.

  5. Lets hope they can sort out a rationalised pricing strategy, price for a certain electrical part from Saab Parts £247, price for the same part (Bosch) brand new in the box with the latest part number from a well known UK independent parts provider £47, someone is extracting the urine! Had the part in question been priced sensibly, lets say at around £100 I would not have bothered to look elsewhere, finding this is happening more and more, once you come across that sort of over pricing it makes you check every price you get quoted!

  6. This piece of news really brought up some mixed feelings. The Swedish Saab is practically gone and now the Government is sucking the Saab owners for money. The same government that had a big part in “helping” Saab… Well, the good thing is of course the parts supply that is still there…

  7. The availability of parts is very important to Saab owners.

  8. I have to ask the obligatory question on behalf of the 2010/2011 North American owners…Will this change our warranty (or non-warranty) situation in any way?

    • Not sure, but for GM era owners, this just appeared on my Facebook pages today: “Today Saab Rockville officially signed a agreement with General Motors to perform direct pay and approval warranty work of GM owned Saab vehicles. This will really allow us to assist you in getting your cars warranty issues taken care of as well as updates to vehicle systems as they arise.” I wonder if this covers recalls too????

      • Saw this too Angelo V. and my dealer as well on the 17th of this month can do the same. We have been doing this without any big issues working with a GM dealer but as of the 17th it will just go through us from what I understand.

    • I would also like to know if the warranty situation will get reinstated for NG 9-5 owners. I purchased my 2011 prior to the bankruptcy and was told by the salesmen that warranties were fully funded even if SAAB were to go under. He is still telling me to date that North American owners should be getting settlement checks. I will not hold my breath. I really enjoy my car, but I feel that NEVS, the Swedish Government, or GM need to step up to the plate for 2010/11 owners. It is not fair that 2009 and prior years are covered.

      • Don’t know the answer on this one yet but will let you know when I know.

      • Certainly Jason, a lot of people got hosed in this debacle. Us 2010/2011 owners were among those people. I wouldn’t hold my breath either, but it would be nice if someone were to cover us.

        • And my two cents … really we’re only talking covering the customers who bought NG 9-5s and 9-4Xs prior to Saab going bankrupt and having the warranties canceled.

          So instead of whomever covering warranty costs for approximately 8K – 10K NG 9-5s and 467 9-4Xs, the numbers of the actual covered vehicles should be far less.

          How many 9-5s and 9-4Xs do we think were sold pre-bankruptcy/pre-fire sale? 7,000 and 200?

          • E, I believe 2010-11 9-3 purchasers are also not covered by any warranty at this point. Only those that bought Saabs while GM was still technically the owner are still covered.

        • The few of us in the UK who are in the same boat would like to hear good news re a warranty, too.

          • I thought other markets like the UK were indeed covered?

            Separate thought, how many cars did Saab sell in NA in 2010 & 2011 (excluding 2009 MY cars)? It can’t be that many. I think less that 3,000 NG 9-5’s were sold in the US.

            • Us sales:

              2010. 9-3. 4032. 2011: 3847
              2010. 9-5. 727. 2011: 1496
              2011. 9-4x. 267

              Any car sold after 2011 were sold as used cars, due to no warranty.

              The sales figures don’t say what model year they are, within the calendar year sales.

              • So we are talking warranties for 10K cars, the vast majority on the road problem-free.

              • Don’t forget all the existing inventory that Spyker bought. Mine was one of them, an ’09 9-3 SS Aero. My dealer had over 30 9-3’s and 9-5’s. Even had 3 2008 9-5’s in October of 2010.
                If somebody had access to dealer inventory figures in March of 2010 this would have been the leftover GM cars that Spyker bought. Just think about it, all the cars you saw at Saab dealers unsold from March thru August of 2010 would be the old era GM/Saab cars–there were lots of them.
                This would have a pretty straightforward figure during the purchase as it would have been inventory to be accounted for.

            • No, SAAB parts UK did come up with something called SAAB Secure, which is an extended warranty policy which is not cheap and has so many exclusions that, after speaking to the issuing company, I decided was a waste of money

              • exactally my thoughts, took out a warranty direct one instead, cost 350 but well worth the cover

  9. I have to saw that GM has stood by my 2009 9-3 very well so far. The old GM/Sabb dealership in Vancouver seems to have pretty good relations with our local Springman’s Saab and so far so good. My big worry has been parts availability but if this is settled, that is all I can ask for. I have one more year on my factory warrantee and then three more on my extended warrantee so my fingers are crossed!

  10. Just wondering who are making those Saab body parts since production of the cars has already ceased for a while? The supply of these body parts can continue only if Saab Parts is the company that is owning the stamping plants and producing the panels etc that is needed.

    • Most body parts are being stamped in the Saab factory by Saab Parts in cooperation with NEVS as we speak from my knowledge. The only one I don’t know for sure is the 9-4X but I will try to get an answer on that one.

  11. Over all good news for current Saab owners. Better late than never.

    Just a thought.

  12. You know, I read just a little more into this than other comments above suggest. SweGov has an interest in ensuring that that Sweden’s commercial products are supported. After all cars are a big-ticket item for most purchasers and if they didn’t support the aftermarket in spares to keep them on the roads, then it might just get around that you shouldn’t buy anything Swedish because you might well be left high and dry if the company is taken over or goes belly up.

    AFAIR they were originally willing to offer Parts for sale to the successful bidder after three years. But if that is no longer the case it suggests to me that SweGov have concluded that they do not trust NEVS enough to do a good job of supporting Saab’s historic products. Perhaps they feel that NEVS interests are focused almost exclusively on China and not on preserving the general image of Swedish industry. Perhaps they also feel that preservation of brand reputation is not a particular NEVS priority (or indeed capability).

    My own gut feeling accords with both of these thoughts and I am much happier now with the prospect of Parts being in the hands of SweGov indefinitely, whatever the prices.

    • The only reason the Swedish government (or actually, the National Debt Office) has assumed ownership of Saab Automobile Parts AB is because the government stood surety for the loan in the European Investment Bank and Saab Parts was held as collateral. Had the bankruptcy estate raised enough money by selling Parts to someone else and paid the NDO in cash, this wouldn’t have happened. The reason the state will most likely keep Parts for a few years is because they right now cannot sell the company for as much as the collateral was worth, and therefore will keep the company until it has generated enough profit not to cause a loss when disposed. Saab Parts is already working on establishing new distribution agreements with other companies to be less dependent on parts and accessories for Saabs, make better use of the facilities in Nyköping and increase the profits. I have noticed that many of Saab Parts’ new subsidiaries in Europe has been named “Swedish Distribution Services”, for example “Swedish Distribution Services Deutschland GmbH”, so I wouldn’t be surprised if the whole company was re-branded as that.

      • Then why suddenly announce that they intend to keep the company for the foreseeable future if there has been no change in strategy?

        • I thought I replied to that by writing:

          “The reason the state will most likely keep Parts for a few years is because they right now cannot sell the company for as much as the collateral was worth, and therefore will keep the company until it has generated enough profit not to cause a loss when disposed.”

          What do you mean would have changed? Possibly the NDO hoped that NEVS or someone else would be willing to buy Saab Parts from the bankruptcy estate for as much money as the worth of the collateral. When that did not happen, the NDO decided to assume ownership the pledged shares in Parts.

      • JH – if they hadn’t have taken ownership of Saab parts (ie carved it out of the bankruptcy estate) then the proceeds from the sale of it would have just gone into the overall saab receivers pot for eventual distribution to the creditors. They truly would have got mere pennies back.

        • No, I don’t think so. Not since Saab Parts already was a separate company and the NDO had a pledge on the shares in that company.

          • They had to exercise that demand..so then they held the shares.. Thus they became the owner. If the hadnt it would have reverted to being another asset of the overall estate.

  13. http://midatlantic.aaa.com/Automotive/ExtendedWarranty

    For those of you asking about buying a warranty plan—–this is a link to AAA Mid-Atlantic. I’m sure it varies from region to region.

  14. This is good news for SAABisiti like myself with an 06 9-5? I am totally stoked.

  15. When are these bums going to reinstate the North American warranties like the ROW?

  16. If the Government is taking over, I know I’m gonna get screwed.