While Saab Automobile AB is waiting for bridge loan funding, the manufacturer payments (such as those for warranty repair) for its dealers in North America are on hold. Last Thursday, dealers were told that the payments were going to be delayed during a conference call with manufacturer representatives. A memo had also been sent from Saab Cars North America COO Tim Colbeck. The affected payments are those for warranty work, dealer holdback and dealer incentives.
Colbeck added that Saab intends to offer funding when it’s available but it would have to use its judgment on whether these programs will be used until SCNA could confirm funding is in place.
The notice was given after General Motors, which previously owned Saab, revealed that it won’t approve a rescue deal between current Saab owner Swedish Automobile NV and the two Chinese companies that want to acquire the brand.
Colbeck said sorry to dealers for the delay. He also revealed that Saab Cars North America’s payments will be more timely as more regular funding is arranged. Saab spokeswoman Michele Tinson said that payments to dealers were delayed as of last Thursday.
Colbeck indicated in the memo that the payment delay is expected to be resolved early in the week. The memo of understanding between Swedish Automobile and the Chinese companies, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. was set to expire on Nov. 15. [source: Autonews]