GM says it will honor Saab warranties

[December 21, 2011]  DETROIT (AP) -- General Motors says it will honor warranties of Saab cars that were sold in the U.S. and Canada while the Swedish automaker was part of GM.

Cash-strapped Saab filed for bankruptcy in Sweden Monday. The company has suspended warranty coverage for all vehicles in North America.

GM said Tuesday it will cover the warranties if Saab doesn't.

GM will pay warranty costs for about 48,000 Saabs in the U.S. and 9,000 in Canada. The cars are from the 2009 model year or older, except for a few 2010s in Canada. GM had been paying Saab for the warranty costs. Now it will pay dealers directly.

GM says Saab owners should still contact their dealers for warranty work.

GM sold Saab to Dutch luxury sports car maker Spyker Cars in 2010.

[Associated Press]

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.