In another cost-reduction effort, GM announced today it will cut the warranties on all new Saab vehicles it currently sells in the U.S. Currently, Saabs come with a seven-year, 100,000 mile extended warranty option, or five years and 100,000 as standard for the powertrain, which includes the engine and transmission. Effective as of Friday, the new warranty is valid for four years and 50,000 miles.
GM told its Saab dealers of the change on Friday, but will still offer free scheduled maintenance on the vehicles for three years or 36,000 miles in order to remain competitive with other luxury brands.
Only Saab vehicles get the warranty cut, and Cadillac and Hummer retain the extended warranty along with a five-year, 100,000 mile powertrain warranty. GM has not announced how much money the move is believed to have saved it, or why just Saab’s warranty was effectively halved, at least in terms of allowed mileage.


07/28, 2:20 PM
posted by:
xyunya
GM just effectively stated that Saab is a troublesome car. The warranty costs nothing unless car break down.
07/28, 2:21 PM
posted by:
F451
I have to agree with xyunya as this conveys a lack of confidence in the Saab brand…GM is getting desperate.
07/28, 2:30 PM
posted by:
Captain Crunch
Just goes to show how s.hitty Saab’s are. If GM thought that Saab’s would be a reliable quality product without any major issues for 7 years, these cutbacks wouldn’t be necessary. What this says to me is……we know Saab’s are a major headache and we can’t keep wasting our money fixing it for free every time it brakes.
07/28, 2:34 PM
posted by:
mayer_ray_nagin
IOW, screw SAAB.
07/28, 2:36 PM
posted by:
xyunya
^^^^too late for you; GM Beat you to it.
07/28, 2:37 PM
posted by:
golf4me
Hmmm, Honda and Toyota only have 3/36 warranties. I guess they are junk too.
07/28, 2:40 PM
posted by:
SickofGarbageMotors
I wouldn’t trust a Saab after the warranty period was up. Sh1t, my Enclave was probably more reliable.
Saab is a dead brand walking…
no, limping…
with a bullet in the leg…
walking through a land mine
07/28, 2:40 PM
posted by:
SickofGarbageMotors
…field of landmines
07/28, 2:41 PM
posted by:
SickofGarbageMotors
http://www.reuters.com/article/domesticNews/idUSN2849133620080728
07/28, 2:59 PM
posted by:
xyunya
golf4me, it’s true, but don’t tell to millions of Toyota and Honda owners. And even more are coming: Honda had a sellout quarter, unlike other autolabels.
07/28, 3:03 PM
posted by:
injunraiv
OK, so if this displays a ‘lack of confidence’ in Saab, then keeping the 5 year / 100K mile powertrain coverage on the rest of the GM fleet displays ‘confidence’, right?
I’m only asking because when they came out with it 1115 said it was because they had to, they build junk.
So which is it?
07/28, 3:16 PM
posted by:
xyunya
As I stated before, the warranty itself cost nothing to manufacturer, if cars don’t require repairs. To downgrade warranty is to admit financial loss on it and divert cost to consumer
07/28, 3:26 PM
posted by:
mayer_ray_nagin
GM just gave everyone 50,003 more reasons to NOT buy a Saab.
07/28, 3:28 PM
posted by:
inline6
Wow…I seem to remember when GM extended its warranties to 5 years/100k, everyone said, “GM wouldn’t be doing this unless the cars needed it!” Now GM rolls back one part of the warranty (making Saab competitive with its competition, instead of far out in front) and everyone’s banging on about how Saab is a dead brand full of unreliable vehicles.
Saab is about to double its product portfolio with all-new models, and has significantly reworked its 9-3, with slick new styling, fuel-efficient engines, the best saefty on record, and the company offers XWD, which has been nothing but acclaimed by the press.
Could GM have been doing better by the Saab division? Absolutely. But the mistakes of the past are being corrected now.
07/28, 3:33 PM
posted by:
xyunya
inline6, you are absolutely correct. When GM extended warranties they needed to send message that their vehicle on par with japanese on quality. Remember those days, when GM was much less reliable? Nobody plays around with warranty one way or another unless economic conditions forced them to do so. That includes increasing warranties to gain customers or decreasing warranties to minimize losses. Remind you that none of japs fool around with their warranties since 60’s. Any explanation for that?
07/28, 3:40 PM
posted by:
SickofGarbageMotors
Just like Suzuki, Dodge, Mitsubushi and isuzu, the warranty program was a ditch effort to improve sales. It pretty much saved Hyundai’s butt in the 90’s after people were burned on POS Excels and accents. Other cases like Isuzu were so far gone, it couldn’t save them.
Warranty costs on Saabs are huge. I know first hand as my SIL 9-3 conv. just had it’s top replaced to the tune of 2500 bucks. It has been a problematic POS as well and should have been dumped at the start of the Springtime, now it’s pretty much fall so she’s stuck with it until next Spring. Oh and has roughly 62k on it (2003 model)
07/28, 3:50 PM
posted by:
howsmydriving
Damn! I was just about to buy fourteen new Saabs! Now I’ll have to change my mind.
07/28, 3:52 PM
posted by:
SickofGarbageMotors
Look at Saabs current lineup. Besides ditching the hatchbacks all-together, they’re peddling a pretty outdated lineup.
9-3? Goes back to 2003 and shares the same underpinnings as rental cars like the pontiac G6 and Malibu.
9-5? In it’s 8th model year
“The B235-based 9-5 models have suffered an abnormally high rate of engine failures due to engine oil sludge. This primarily affected the 1999-2002 models. SAAB refined the engine’s positive crankcase ventilation system (PCV) for the 2003 and later model years, virtually alleviating the problem.”
9-7x - Trailblazer clone, one of 6.
9-2x - Failed Subaru clone
inline6, you have much more optimism for this brand than anyone I’ve talked with. Even my Saab fanatics up here in New England (basically Saabs last stand in the U.S. market) have admitted the cars and the brand are hopeless. So, if there is going to be some kind of huge renaissance coming in the future, I have serious doubts GM can cough up the cash to afford it. Saab hasn’t made a dime for GM so why should they pump anymore money into it? They need a whole new lineup within 2 years tops, if they’re going to have even slightest chance at a future. GM best option would be to sell it while it has some clout in Europe.
07/28, 4:14 PM
posted by:
Spingood Tanoya
Honda’s powertrain warranty is 5 yrs/60K miles. The 3/36 warranty is the “bumper-to-bumper” warranty. So the cheapest Honda now has a 1 yr/10K miles better powertrain warranty than any Saab.
07/28, 4:37 PM
posted by:
inline6
SickofGM,
I’m in the other bastion of Saab sales, the Pacific Northwest. There’s one on every corner here in Portland.
The 9-3 dates to 2003, but so what? So what if it shares a platform with the Malibu and G6? Does it handle well? Yes. Is it safe? It’s the safest. Is it fun to drive? Absolutely. So, what’s the problem with platform sharing if it’s a good platform? Also, can you tell me which of the 9-3’s parts are interchangeable with the Malibu and G6? They don’t share the same wheelbase, track, overall length, etc. They are very loosely based on one another. And the 2008 refresh has added punch to the lineup that wasn’t there previously. I think the 9-3 is a damn good car. Is it in the league of the 3-Series in all respects? No, but it’s also priced the same as the 1-Series. What platform would you have recommended GM base the 9-3 on? Its own unique platform? Saab ran out of money for a reason in ‘89, and they’ve been the most stable they’ve ever been under GM, even if GM hasn’t had a clue how to manage it. Saab sales worldwide are at record levels, in fact.
And FYI, the 9-5 is in its 10th season on the market, as it was introduced for the 1999 model year. Its underpinnings are actually based on the old Saab 9000 and last-gen Vectra. Yes, the car is old. Yes, it isn’t competitive anymore. Which is why a new one’s coming in 18 mos.
The 9-7x and 9-2x were failures, and embarrassing ones at that. But take a look at what Saab’s got coming: a new 9-5, a 9-1, and a new 9-4x that looks excellent. And the current 9-3 is an excellent vehicle with its updates and new technology.
So just as you pan the General for past mistakes, give credit where its due. A warranty cutback won’t kill the company. It may not bode well for how reliable they are now, but I hope that GM takes this as a cue to improve this aspect of their vehicles.
07/28, 5:19 PM
posted by:
RaineMan
Holy crap. There goes Saab. No one is going to want those overpriced euro POS cars now.
07/28, 5:22 PM
posted by:
shaver
I forgot they were still sold in the US.
07/28, 6:01 PM
posted by:
injunraiv
xyunya: “Remind you that none of japs fool around with their warranties since 60’s. Any explanation for that?”
How about it’s not true? I don’t know the dates, but I can tell you pretty solidly that Honda did not have a 3/36 warranty until the 80s. Interestingly, because of a poor quality perception, IIRC…
07/28, 6:21 PM
posted by:
deutschetouring1337
Watch sales will come to stand still.
07/28, 9:45 PM
posted by:
Catiadesigner
Poor SAAB, they used to be quality machines with a higher buyer return level than Mercedes-Benz, but then GM took them over and turned it into another cheap and nasty GM.
I remember at the 2003 British motor show myself and a friend who works for Jaguar couldn’t believe how shockingly bad the quality of the plastics were, they were awful, then I came to the USA and all cars were that bad. The bast thing for SAAB to do it get Scania (Volkswagen) to buy them back from GM and go back to building quirky, highly engineered motor cars not some POS GM clone.
07/28, 11:15 PM
posted by:
S1L1SC
SAABs have a horrible reliability track record. This will simply keep more people from buying one.
07/29, 7:53 AM
posted by:
SickofGarbageMotors
inline6, not to jump off topic, but I absolutely love Portland, OR. It is one of my favorite cities I’ve ever traveled to. If the housing market didn’t suck as bad as it does up here in Boston, I’d sell my home and move there in a heartbeat.
Will be back there in August, I’ll look for all those 9-3’s
As far as responding to your questions, I’ll have to get back to you, I’ve got meetings to go to.
07/29, 10:31 AM
posted by:
xyunya
injunraiv, I started buying Hondas in late 80’s and during 90’s had a few. They were on top of CR and C&D lists all through 90’s. I do recall all Japanese cars rusting prematurely, especially Datsun (which I also owned), but it was true for all cars then, especially unibody construction. Body-on-frame lasted better in “salty” climates - frame was absorbing more salt and rusting bellow the visible surface.
07/29, 11:23 AM
posted by:
brassmonkey
Saabs are about as popular as Isuzu in the US. GM knows how to kill a brand. They could eliminate the competition just by buying them. Kill Ford? Sure. “Introducing the new 2010 Chevy Ford with a 6 month, 4000 mile warranty!”
-
-
Dead.
07/29, 1:14 PM
posted by:
inline6
brassmonkey, Isuzu sold less than 5000 vehicles last year in the US. Saab sold 30,000. So Saab is more than 6x more popular than Isuzu.
Saab is in no danger of death, folks. With one significantly updated car this year, and 3 all-new ones coming down the pike in the next 18 months, the future looks long for Saab.
07/30, 8:44 AM
posted by:
SickofGarbageMotors
30 thousand cars is peanuts. 2500 per month, spread out over 50 states is an average of 50 cars per state.
So if there is 5 dealers in each state (probably more in states like Cali, NY, Fla, less in the MW states), then each dealer sold 10 cars per month. Then factor out fleet sales.
Keep up the optimism I guess.
07/30, 1:04 PM
posted by:
inline6
Sick of GM,
1) know how many cars Audi sold in the US annually before sales took off with the latest product blitz? About 40,000 as recently as 5 years ago, I believe. Saab, with 3/4ths the models Audi had, is pulling 3/4ths the sales.
2) You as yet have been unable to supply ANY statistics that show that ANY Saab has been flogged off to a fleet. The last time we brought Saab and fleet sales up, you linked to an article about 2007 models, and Saab wasn’t even on the list!
3) There aren’t a whole lot of independent Saab dealers (there is one in Portland, because they sell well here) in the country. But if it weren’t a profitable enterprise, dealers wouldn’t be into them at all.
4) Saab is about to completely reinvent its entire lineup. The 9-3 was reskinned to great results, and with the new 9-5, 9-4x, and upcoming 9-1, why shouldn’t I be optimistic?
07/30, 1:08 PM
posted by:
inline6
Oh, and thanks for your comments about Portland. I’ve lived in Portland, or within 30 minutes of it, since I was an infant. I’ve been to 29 states (though none in New England, which is my next goal), and found other cities I liked, but none quite compare to Portland, in my view. Yeah, we’re weird and quite lefty, but we’ve got a nice city, a nice area, and character. Thanks for the props, man.
07/30, 2:08 PM
posted by:
beatusmongous
Inline6, I’ve only been to Portland twice, and both times I drove on that flyover that has the view of the city and the port off to the left. That view is absolutely amazing. However, I would say that a tire and brake shop in Portland would probably have tons of business…
07/30, 3:46 PM
posted by:
SickofGarbageMotors
Check under the “Entry Level luxury cars”
http://www.automotive-fleet.com/Statistics/StatsViewer.aspx?file=http%3a%2f%2fwww.automotive-fleet.com%2ffc_resources%2fstats%2fAFFB-cht-car-LT-reg.pdf&channel=
The numbers are small, but they do get fleeted. I’ve rented two of them whan my old Acura got rear-ended and was in for 2 months to repair the damage. A 9-3 and a 9-5 wagon.
The 9-5 had would sieze a cylinder when parked overnight causing a nasty screech and a puff of smoke on startup. The 9-3 had an electrical panel that would go dead in the rain and then flicker back on when it dried out. My Oldsmobile back in the 80’s did that sort of stuff. Did drive pretty nicely but the Automatic was slipping on it but I couldn’t fault the car as it was probably beaten on by former renters.
07/30, 4:08 PM
posted by:
SickofGarbageMotors
“4) Saab is about to completely reinvent its entire lineup. The 9-3 was reskinned to great results, and with the new 9-5, 9-4x, and upcoming 9-1, why shouldn’t I be optimistic?”
Because GM is strapped for cash, and burning through it fast. Outside of Cadillac and Chevy, all of GM’s brands are losing ground.
Look at Pontiac, they have the G8 and the Solstice.
Look at Buick, outside of the success in China, the only hot selling product they have is the Enclave (I had one actually).
Look at Saturn, they have a completely fresh lineup and between quality and reliability problems, and the pumped up “take it or leave it” prices, the brand is still tanking.
GMC sells nothing but trucks, a profile that doesn’t look too promising in the days of $4 - 5 gas. Sales are down
Hummer is gone, thankfully
Even Chevy and Cadillac are just getting by. Most of that can be contributed to the falling truck sales, but that is where GM gets its profits from. But even the STS has never really taken off in sales, the DTS is heavily fleeted and the SRX tanked the day it rolled off the lots. And on the Chevy side, the Impala, Malibu, Cobalt all see heavy fleet sales and other than the Vette, the rest is SUV’s and trucks. Even the Aveo, a car the GM desperately needs right now is bottom of the class in both fuel economy, and especially safety and needs a complete overhaul.
Now, I know GM is reducing fleet sales and I appluad that but look at the holes here. Look at the amount of models that are either severely lacking, or just plain lame ducks on the market. Balance that with 20+ trucks and SUV’s and things are beyond ugly. I just don’t think that Saab is, or should be even close on the priority list. I’m not going to criticize you for sticking by them as a loyal fan (And we have them here too, that’s for certain) but all the effort that you’re saying is going to take place over the next 18 months just seems impossible given GM’s current situation. I honestly hope that this isn’t a case of throwing good money after bad, that’s all.
07/30, 4:15 PM
posted by:
SickofGarbageMotors
Oh and when I get to Portland next month, is there any chance that those OSPIRG folks can take a vacation? lol, they were on parctically every streetcorner. I’m all for the good of the environment but jeeze, they were pretty hardcore about stopping you and giving you the speech.
07/30, 4:32 PM
posted by:
inline6
I haven’t seen the OSPIRG people out recently. But I have seen volunteers from the Democratic National Committee. They’re wasting their money. Kerry took Multhomah county (which stretches well into the rural Columbia River Gorge) with 73% of the vote in ‘04. Obama will beat McCain here by even more, I suspect.
And, Sick of GM, I see a lot of hype on what GM is up against. And it’s not my aim to downplay the pressures and struggles. But I don’t think they’re anywhere near on the ropes. They’ve got enough cash, enough talent, more than enough exciting, new metal coming in the next 2 years, they’re leading in research on Li-Ion and hydrogen tech, the union concessions kick in in 2010, and they currently offer the most fuel-efficient line of trucks and SUVs (if you don’t count Hummer) of anyone in the market.
So while a down economy (at the moment), skyrocketing material costs, high oil prices, and massive issues with CAFE and safety regs loom large now, I think GM’s got the money, the talent, and the global product portfolio to weather this AND provide Saab a new line of cars.
And, I’ll remind you again, worldwide, Saab sales are at record highs. You and I can agree to disagree, but I see things to be optimistic about.
08/03, 1:47 AM
posted by:
lukasgoeppinger
“30 thousand cars is peanuts. 2500 per month, spread out over 50 states is an average of 50 cars per state.
So if there is 5 dealers in each state (probably more in states like Cali, NY, Fla, less in the MW states), then each dealer sold 10 cars per month. Then factor out fleet sales.
Keep up the optimism I guess.”
Illinois has a huge Saab market. I’d say a huge portion of those sales are in this part of the Midwest. I live in the North Shore(Chicago Suburbs) and Saab is really popular here as are most other European cars. There are eight dealerships nearby. I see them everyday, the redesigned 9-3’s are coming around too, I see a lot more now than I did at the beginning of summer. I can see why inline6 is optimistic about the brand.