automotive news

Jamie LaReau

Automotive News Europe

February 23, 2009 06:01 CET

General Motors executives were surprised by the speed at which Saab filed for court protection from its creditors last week, leaving them with few answers for anxious U.S. Saab dealers.

GM tried to provide that information during a dealer broadcast Friday, but dealers said details were sketchy.

“The GM leadership was surprised by the filing and didn’t know it was coming, so they are going through scenarios right now that they don’t have the answers to, such as buying back inventory and so on,” said a Saab dealer who listened to the broadcast.

A GM spokeswoman said the company had no advance word about the timing of the filing. Although GM owns Saab, it had moved to set Saab up as a separate entity with its own board.

“We knew a filing was a potential, but it could have happened this week or later,” Joanne Krell, spokeswoman for the Saab brand in Detroit, said Friday. “It just wasn’t entirely clear.”

The Saab dealer who heard the broadcast said GM assured them it will honor warranties and prepaid maintenance and provide parts.

GM leaders told dealers they will be putting more incentives on Saab vehicles in March to help move inventory.

GM also said it will begin paying suppliers to Saab Automobile AB the $127 million due for parts shipped as of today, Feb. 23, say GM sources.

The move comes after Sweden’s government rejected a request for financial aid from GM, the carmaker’s U.S. parent. On Friday Saab said it had filed for reorganization under a self-managed Swedish court process.

Saab said it would continue to operate normally during the reorganization, with GM and the Swedish government providing some support.

The Saab reorganization is headed by an independent administrator appointed by a Swedish court. The administrator’s job is to formulate an outline for restructuring and present it to creditors in three weeks.

The process will be concluded in three months, at which time the reorganized company either emerges as viable, with new funding from private or public investors, or moves into liquidation.

John Revill of Automotive News Europe and Robert Sherefkin contributed to this report

My next topic came to me some time ago in dramatic form. The shelf life of tires was featured on an ABC News info drama. I choose to leave the fearful drama aside but think it’s a topic worth noting. The video can be found on ABC’s website.

I broach the topic for the Bellingham Business Journal with the help of our ever present inquisitive customer.

Q: My father in law asked me how old my new tires are? I just bought them they are new, right?

A: Not necessarily. Like milk, eggs or corn chips, tires have a “best if used by” date printed on them. Only outdated tires could be a lot more hazardous than tainted treats. On the side wall of every tire is a sequence of letters and numbers beginning with the letters DOT.  For example: DOT B97R FW6X 2202.

The numbers at the end of our example are the week of the year the tires were manufactured. In our example the tires were manufactured in the twenty second week of two thousand two. Tires older than six years may be unsafe and should not be used.

A reputable tire store will readily make this date available for you. I recently bought a set of tires for my wife’s Toyota. The dates of manufacture; 0309, the third week of 2009 were conveniently printed on the invoice.

MMMM fresh tires.

Bellingham resident, Fredric Hood owns what might be called an Uber-Muscle car.  Cool Cats and Hot Gals don’t think of German luxury when considering 1970s muscle car era, but Fredric’s Mercedes Benz 300 SEL certainly merits mention.

In 1988, while Fredric was living in Anchorage Alaska, his mechanic suggested he look at a very special Mercedes Benz. So Fredric took the 6.3 liter Benz for a test drive. You might say it was love at first linear G force. The huge mechanically fuel injected, V-8 pushed him back in the sear at wide open throttle.  300 horse power was still a lot back in 1988, especially for a luxury sedan built in 1970. The Air suspension maintained a firm grip while the rear of the car gave a little wiggle as the automatic transmission shifted in to third gear. Even by today’s standards it will get your heart pumping.

“This luxury sedan from Germany turned in quarter mile times comparable to the iconic Pontiac GTO muscle car of the same vintage,” coments Bob Taylor, owner Master Auto Tech

What set this car apart was that it could cruise at over 120 mph carrying five people in complete comfort. The claim by Mercedes Benz that this was the fastest luxury car in the world along with its modest styling, make the 300SEL a real sleeper. The uninitiated who fail to notice the 6.3 stamped on the rear deck could be in for a surprise at the next stop light.    

Fredric kept the car as his daily driver and brought it to Bellingham with him in 2003. The interior wood trim is like new and the leather seats have all been replaced. The fresh factory anthracite gray paint and service and repairs using original manufacturer equipment parts make this a well kept true classic.

“It’s still a real head turner, especially among classic car aficionados.” Fredric notes and laments tongue in cheek that until he owned this car he had never had a speeding ticket. That horse power can get expensive can’t it.                                                                                                                         

The dusty but intact Bugatti Type 57S Atalante is one of only 17 ever made. It had a top speed of 130 mph at a time when most cars could only go half as fast.

The powerful two-seater car from the heyday of the celebrated Bugatti marquee is expected to be sold for more than 3 million pounds ($4.3 million).

It was hidden away in the garage of an elderly doctor who last used it around 1960. His relatives found it after his death.

British race car driver Earl Howe was the car’s first owner.

Hans Greimel
Automotive News Europe
December 5, 2008 09:52 CET
UPDATED: 12/05/08 10:26 CET