Koenigsegg to Terminate 81 Saab Dealerships
General Motors sent a letter to Saab dealerships today regarding the sale of the brand to Swedish super carmaker Koenigsegg, and notified 81 of Saab’s 218 U.S. dealerships of their termination.
In the letter, GM explained Koenigsegg selected the surviving dealerships and that the company will operate the Saab brand through a new entity, Saab Cars North America, in the U.S. Terminating the dealerships should cause less drama than the closing of GM’s dealerships, as Saab dealerships signed a termination agreement when GM entered bankruptcy in June. The termination agreement will be enacted for the 81 affected dealerships.
“SCNA did make its selection of [remaining] dealers based on our business plan and the needs of that plan,” said Mike Colleran, chief operating officer of Saab Cars North America. “Essentially, we’re looking for strong dealers who have good profitability and good throughput.”
With only 137 dealers left nationwide, location was also a factor in the process.
As of now, Koenigsegg aims to close the acquisition of Saab by the end of November. Colleran says it could take up to the end of the year. Even though Saab would be under control of Koenigsegg by then, the dealerships’ contracts would remain with GM until they expire in October of next year. After that, the dealers will get new franchise agreements with Saab Cars North America.
Source: Automotive News