Due to recent developments affecting certain Takata PSDI-5 inflators, GM will be asking the owners of certain 2003-2011 Saab 9-3, 2010-2011 Saab 9-5, and 2008-2009 Saturn Astra vehicles to return to their dealership for repairs. This Takata equipment recall relates to all Takata PSDI-5 driver airbag inflators produced from the start of production through the end of model year 2014. Continue reading
A problem relating to motor vehicle safety will have almost three hundred thousand 2010-2015 Cadillac SRX and 2011–2012 SAAB 9-4X vehicles returned to a manufacturer approved repair facility to have the problem fixed.
On the affected vehicles, the jam nut in the rear suspension toe adjuster link may not be torqued to the proper specification. A loose toe adjuster link can cause the vehicle to wander, activate the vehicle’s electronic stability control system, and cause excessive wear to the links threads. Drivers may notice loud metallic noises from the rear suspension when traveling over bumps or potholes. If the treads in the link become worn, the link could separate and create sudden vehicle instability , increasing the risk of an accident. Continue reading
General Motors (GM) and Isuzu will be alerting drivers of certain 2006-2007 sport utility vehicles (SUV) of a problem that could result in a fire starting inside the driver’s side door. The problem is being blamed on contaminants getting into the door and causing corrosion and a short circuit in the power door lock and power window switches. Drivers noticing a burning odor or the power door locks and power windows functioning intermittently or stop working completely, are asked to take their vehicles to the nearest dealership immediately. The problem affects certain GM and Isuzu vehicles originally sold or currently registered in Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin, and the District of Columbia. The vehicles included in the recall are:
- 2006-2007 Buick Rainier
- 2006-2007 Chevrolet Trailblazer
- 2006 Chevrolet Trailblazer EXT
- 2006-2007 GMC Envoy
- 2006 GMC Envoy XL
- 2006-2007 Isuzu Ascender
- 2006-2007 SAAB 9-7X
For more information about the problem:
- Buick owners may contact the Buick owner center at 1-800-521-7300
- Chevrolet owners may contact the Chevrolet owner center at 1-866-694-6546
- GMC owners may contact the GMC owner center at 1-866-996-9463
- Isuzu cowners may contact the Isuzu owner center at 1-800-255-6727
- SAAB owners may contact the SAAB owner center at 1-855-880-0808
Luxury sports car maker, Spyker, has filed a lawsuit against General Motors accusing them of deliberately bankrupting Saab by blocking deals with foreign investors. When Spyker bought Saab from GM in 2010, the agreement allowed GM to retain the rights to technology and patents used in the engineering of Saab vehicles. As Saab struggled to avoid a court action to liquidate the company, Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade came forward with $140 million dollars to invest in the company with an expected additional investment of up to $708 million to build Saab vehicles in Sweden’s Trollhattan plant as well as open a factory in China. According to Spyker, the deal was blocked by GM executives because they did not want Chinese investors to have access to GM technology, allowing them to compete against the U.S. auto maker in China, one of its most important foreign markets. Spyker Chief Executive Victor Muller accused GM of “deliberately pushing Saab over the cliff”. Spyker is seeking $3 billion in damages, the estimated future value of Saab if Zhejiang Youngman had been allowed to buy the Swedish auto maker and invest in it.
The lawsuit comes as GM struggles to survive in Europe. The auto maker said last week that its second-quarter earnings plunged 38% due to a $361 million loss in the company’s European operations.
The National Highway Traffic Safety Administration (NHTSA) is investigating certain GM vehicles after receiving twelve complaints of smoke and fire from the inside of doors of some Trail Blazer mid-size sport utility vehicles. The complaints are similar to consumer reports that lead the NHTSA to open an investigation into some 2007 Camry, Camry Solara and Rav4 vehicles, earlier this month. The NHTSA will be focusing on whether window switches on the GM and Toyota vehicles were manufactured by the same supplier. The investigation could affect up to 310,000, 2006-2007 Chevrolet Trailblazers. According to the safety administration, the Buick Rainer, Saab 9-7x, and the GMC Envoy share the same parts at the Trail Blazer, but these vehicle are not part of the investigation yet
A rescue plan to save Saab has hit another road block as General Motors decides to stop supplying Saab 9-4X vehicles as well as automobile technology to Saab’s Chinese owners. According to GM, Saab’s third quarter results showed that it is not in the best interest of GM shareholders to continue investing time and money into the company. While Saab Cars North America has suspended warranty coverage on vehicles, GM says they will continue to cover any warranty remaining on Saab vehicles sold under GM ownership. This includes any 2009 and earlier model vehicles sold in the US and Canada.
Saab Cars North America has told owners of newer vehicles to keep receipts of all related warranty work or services performed until further notice. They said they are suspending the processing and payment of all claims, including recalls, towing, certified pre-owned coverage and no-charge maintenance until further direction from Saab Automobile AB, and that any unsold vehicles still sitting on dealers lots will be sold “as is”.
Saab has not filed for either Chapter 7 bankruptcy, which would lead to the liquidation of the company, or for Chapter 11 bankruptcy, which would result in the reorganization of the company under court supervision and protection from creditors.
Hours before facing court action to liquidate, Saab has been saved by Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade, in an agreement to buy the company for a little over $140 million. The Swedish automaker has been struggling to survive since January 2010 when General Motors sold the automobile division to Spyker cars. In April 2011, the company continued to struggle as factories closed due to lack of credit. At the time, the tentative agreement with China’s Pang Da Automobile Trade allowed the factories to reopen, giving the Chinese company an equity stake in Spyker.
The Chinese companies are expected to invest up to $708 million in Saab, and plan to build vehicles at their Trollhattan plant as well as in China, which will become the second home market for Saab. The deal first requires the approval of the authorities in Beijing, the European Investment Bank, the Swedish government, as well as G.M., which has links to Saab, through intellectual property and preferred shares.
The future of Saab is once again being questioned after negotiations between Spyker Cars and China’s Hawtai Motor Group were terminated. Saab hoped that money obtained through the million dollar agreement, would allow Saab to reopen their Sweden factories, which have been closed since April due to lack of credit from suppliers. Hawtai confirmed that talks have fallen through saying that both sides were unable to reach an agreement in the allowed time frame, but hope that negotiations will continue. The lack of consensus of the deal is being blamed on a hasty agreement put together by Spyker’s chief executive and chairman before full approval was obtained from its backers.
Spyker also continues to remain in discussion with another potential investor, the Russian businessman Vladimir A. Antonov. Negotiations between the two parties was blocked last year by G.M before they sold the Swedish automaker. Allegations of suspicious financial dealings was the reason for the breakdown of those negotiations.
Things are starting to look better for Saab today as they signed a tentative deal with one of the largest publicly traded car distributors in China. The finance and import deal with Pangda Automobile Trade, comes after several negotiation collapsed with other potential Chinese partners. Under the agreement, Saab will receive $63 million for an unspecified number cars, plus almost $90 million for equity in Spyker Automotive, giving them some control in Spyker and Sabb management. The deal will include a joint venture to make and distribute cars in China under the Saab brand and a new brand not yet announced. According to Victor Muller, chief executive of Spyker and Saab, “The agreement is a tremendous boost for the company, allowing them to sell imported Saabs in China.”