Bailout Blues: Canadian Saabistas still waiting their fate

Some more news yesterday from south of the border about the up-in-the-air future of U.S. Saab dealers.

To recap: The target date to close Government Motors' sale of Saab, to Swedish boutique sportscar maker Koenigsegg, is Nov. 30. A step in the process this week was Koenigsegg rejecting 81 of Saab's 218 U.S. dealerships.

The news sheds little light on what holds in store for Saab shops here in Canada.

According to GM Canada, this action "has no impact" on its previously announced plans to no longer distribute Saabs in Canada as of the end of the year. But there's still hope for Canadian Saabistas.

"Koenigsegg, as the potenetial new owners of Saab, will decide the future plans for Saab in international locations as their business plans are formulated," GM Canada's Director of Communications, Stew Low, told The Crank.

So Koenigsegg could still come in and swoop up a few Canadian Saab dealers. And sell the cars for twice their going prices. Or not.

If the deal to sell Saab falls through—as GM's deal to sell Saturn to Penske Automotive Group did—GM would close its North American Saab shops.

Do think forthcoming Saabs (like the new 9-5, above) are worthy of staying in Canada?

Or do you think the Swedish brand should revert to being a European regional brand only, as it started out as?

[Sources: Automotive News, GM Canada]

Comments

[Randy]

Well if they price them right, it could be worth it for them to stay in Canada. What I look for is a sporty ride at a price lower than their German competitors. I think they could sell a lot of them at the right price. The Volvo V70 is priced around $41,000. The new 9-5 would be a great value at the same price.

I just hope GM didn't damage the brand so badly that they can't recover. They would have to put a push on to promote the new 9-5 which will cost a lot of $$$$ in advertising etc. Not sure they've got the pockets deep enough for that.

[Warren]

SAAB should go after the VW market, they are untouched. The product is better than VW but not up to BMW or Audi standards and can be priced to steal some of the market from VW. I am in a SAAB because I didn't want any thing from Germany and Volvo was priced to high for what you get. I am eying Alfa and will look at them when they return to Canada and if they are priced right I will go back to an Italian car. (I have had FIAT's for years) SAAB released the AWD a little to late but it did improve the brand. Lets see what happens in 2010.

[Dave]

Canada may have a small market but SAAB must make a concerted effort to stay. They are engineered for the Swedish climate, which is very similar to that of Canada, and are an excellent all round vehicle. Their all wheel drive system came to market very late, likely due to interference from Government Motors, but it is a fabulous system and will work well here.

SAAB vehicles are up-market. The comment about them not being to BMW standards I would suggest only applies in their front wheel drive nature. Their dealer experience is far better (I have owned both brands) for service, and they appeal to the non-status conscious persona. They are priced relatively high, but you get what you pay for in engineering. BMW and M-B have proven that. I currently have a SAAB and M-B.

Now that SAAB is divorced from GM, perhaps they as a corporation can market their vehicles to sell them now that they are not competing with similar engineering from GM. This was always GM's downfall - badge engineering. Look how closely the new Buick offering matches the Opel Insignia. It's not a stretch why GM didn't sell the GM Europe division.

[Chris Budd]

I can assure you Saab will be in Canada. Once the deal is closed with GM and the new owners, Saab North America will be supporting a network through a new Distributor/Importer of record that has experience around the world with all neccessary procedures. The Canadian Saab network will be made up of surviving Saab outlets and some new recruits so that Saab will be represented in all larger Canadian markets. Saab customers can be sure that the car they own will have service, warranty and parts support going forward. Saab will be launching the new 95 as the 2010 model year evolves. 2010 Saab cars will be arriving after a slight delay due to the change over from GM Canada to the new importer.

[Dave]

Chris:
This is excellent news and will likely affect my next vehicle choice. The sooner the deal is done the better. Will the new SAAB continue support etc for previous generation 9-3/9-5 etc?

[Chris Budd]

Yes
Saab will take over all responsibility for Saab's sold prior to the sale and after the sale of the company.Saab will have an exciting future as an independant international automotive niche manufacturer with true Swedish roots!

[Larry]

STOP PRESS! Koenigsegg has backed out of the deal!