Dealers urge Saab to meet demands or face liquidation

Article by Anita Panait, on January 10, 2012

Saab's U.S. dealers threatened to file for a Chapter 7 involuntary bankruptcy petition against Saab Cars North America if the carmaker fails to make them preferential creditors.  The dealers demand transparency in Saab’s liquidation. They also demand warranties, which range from $10,000 to $200,000, for unsold new cars and reimbursement for losses incurred by heavy discounting.

The dealers also want proceeds from sold Saab cars to be deposited at an escrow account rather sending them straight to Saab Automobile. The dealers also want on-site independent auditing team to monitor Saab Cars North America’s daily operations.

"We expect Saab to be 100% forthcoming," said Leonard Bellavia who represents 145 of Saab's 188 U.S. dealerships. Bellavia said his clients will move for the unit’s liquidation if “any assets are being wasted or diverted.”

Dealers have neither received parts nor payment for warranty work and incentives since Saab Cars North America suspended operations on Dec. 19, 2011, when Saab Automobile AB filed for liquidation. Saab appointed McTevia & Associates to manage its U.S. operations. [source: Autonews]

Topics: dealer, saab

If you liked the article, share on:

Comments

Recommended

What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries