Koenigsegg to Close 81 Saab US Dealerships

Saab’s future owner, Swedish super car producer Koenigsegg, will reject 81 Saab dealerships from the US, out of a total of 218, as cost cutting measure. Koenigsegg is thus facing now the same problems as other carmakers (just the other day, Toyota announced its intention to close nearly 300 dealerships throughout Japan.)

GM announced the dealers that Koenigsegg selected the stores to be closed down and that the brand will be operated through a new entity called Saab Cars North America Inc. Sales should be closed until November 30, but it could take until the end of the year, said Mike Colleran, COO of Saab Cars North America.

“SCNA did make its selection of (go-forward) dealers based on our business plan and the needs of that plan,” Colleran says. “Essentially, we're looking for strong dealers who have good profitability and good throughput.”

Saab will have 137 dealers in the US, and these have been chosen based on factors like sales and location. Back in June, all Saab dealers signed a termination agreement when GM entered federal bankruptcy protection, Carney says. The terms of those agreements will go into effect for the rejected dealerships.

In the unlikely situation in which the sale would not go through, just like it happened with the Saturn brand, GM would be forced to close down all Saab dealerships, said Carney. On a more positive note, the surviving ones will still be under the same contract they signed with GM until October 2010. After that they will get new franchise agreements.